Analysts predict a potential altcoin rally following Donald Trump’s inauguration on January 15, 2025. Coinbase analysts observed a decrease in Bitcoin’s dominance, which they believe may have contributed to the recent surge in altcoin prices as traders adjust their strategies under the new administration.
- Analysts predict altcoin rally post-Trump inauguration.
- Bitcoin dominance dropped to 57.3%.
- Stablecoin inflows signal bullish altcoin potential.
- ETH/BTC ratio hits record low of 0.31.
- Fartcoin and XRP show significant weekly gains.
- Hedera and XRP performed well in November.
As Bitcoin’s dominance fell from 58.5% to 57.3% during the inflation relief rally on January 15, analysts from Coinbase highlighted the implications for altcoins. They noted that this drop may indicate traders are gearing up for a broader altcoin market rally, supported by favorable conditions for risk assets and cryptocurrencies. The analysts emphasized that stablecoin inflows are a positive sign, with a $1.3 billion increase in stablecoin supply last week, contrasting with significant outflows from Bitcoin and Ethereum ETFs.
Key statistics include:
- Bitcoin ETF outflows: $457 million
- Ethereum ETF outflows: $206 million
Despite the optimistic outlook, the ETH/BTC ratio, which reflects Ethereum’s performance relative to Bitcoin, reached a record low of 0.31. This trend raises concerns about the anticipated altcoin rally, as similar conditions preceded a downturn in November’s altcoin season. However, some altcoins like Fartcoin and XRP have shown strong weekly gains, with increases of nearly 100% and 30%, respectively.
In summary, while analysts express cautious optimism about a potential altcoin rally, the mixed signals from key indicators like the ETH/BTC ratio suggest that the market dynamics could remain volatile. The performance of altcoins in the coming weeks will be closely monitored to determine if the current momentum can be sustained.
In conclusion, the crypto market is showing signs of potential altcoin momentum following recent events, although critical indicators suggest that caution may be warranted as the situation develops.
