Altcoins
JPMorgan Predicts Altcoin Surge in August as Bitcoin Rebounds: Is It Time to Buy XRP and ADA?
- JPMorgan analysts predict a possible bottom for the current market correction, predicting a strong rebound for Bitcoin and altcoins in August.
- The upcoming launch of the Ethereum spot ETF could prove to be a major catalyst for the future altcoin market rally.
Along with the strong selling pressure in Bitcoin, altcoins have also had to bear the brunt of this broader market correction. However, banking giant JPMorgan believes that the bottom could potentially be reached, as we could be heading for a major altseason ahead.
In their latest published report, JPMorgan analysts said they expect a strong recovery in Bitcoin and altcoins in August. The report also highlighted a higher likelihood of a decline in long-term liquidations by the end of the month.
However, amid this continued bearish sentiment, JPMorgan has had to revise its net inflow expectations for the year 2024. According to JPMorgan’s updated forecast, the cryptocurrency market could see inflows of $8 billion, down from the $12 billion inflows previously forecast.
However, if the price of Bitcoin stages a major recovery in August, there would be a strong recovery for altcoins as well. Contrary to popular belief, BTC growth does not necessarily lead to a decline in altcoins, defying the notion of a Bitcoin season.
After falling as low as $53,500 earlier this week, Bitcoin is on the road to recovery. At press time, Bitcoin price is up 1.51% at $58,094 with a market cap of $1.145 trillion. Bitcoin has done well despite the German government selling its BTC and emptying its wallets on Friday, reported Italian:CNF.
When will the altcoin market rally begin?
However, this will not be the case, as altcoins are simply following Bitcoin’s lead. The last time altcoins rallied, signaling the start of an altcoin season in late 2023, they were also following BTC’s signals.
To confirm an altcoin season, at least 75% of the top 50 altcoins, excluding stablecoins, must outperform Bitcoin. Currently, altcoins are far from having an altcoin season, as about 70% have underperformed BTC over the past 90 days.
The only altcoins that are currently outperforming Bitcoin are Toncoin (TON), PEPE, BONK, Kaspa (KAS), Monero (XMR), and Tron (TRX). All other tokens are suffering losses.
However, there are some upcoming market developments that could potentially trigger an altcoin market rally. Next week, the U.S. Securities and Exchange Commission (SEC) will most likely approve the Ethereum spot ETF, according to CNF updateThis could further push the price of ETH above $3,200, thus setting the stage for a new bull run to $4,000 and beyond.
On the other hand, Ripple’s native cryptocurrency, XRP, has seen strong growth, rising 11% in the last 24 hours, surpassing the $0.50 mark, as reported by CNF. According to data from CoinGlass, XRP Futures Open Interest has increased by over 24%, indicating strong bullish momentum in the market. Additionally, XRP trading volume has jumped by over 73% in the past 24 hours, reaching $2.02 billion.
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