Altcoins
Ripple’s XRP Steals the Show as Glassnode Executives Say Altcoin Roaring Season Could Be Here ⋆ ZyCrypto
The founders of blockchain analytics firm Glassnode believe the cryptocurrency market is on the verge of another full-blown altcoin rally.
Are we about to enter altcoin season?
Altcoins are expected to re-enter a bullish phase, with increasingly clear signals as Bitcoin’s price action consolidates.
Glassnode founders Jan Happel and Yana Allemann highlighted on their shared X account “Negentropic” that the tech-heavy Nasdaq index fell 2% on July 11. In contrast, the iShares Russell 2000 ETF (IWM), an index composed of small-cap U.S. stocks, gained more than 3%. This essentially suggests that investors are venturing into riskier assets in an effort to maximize their returns.
Analysts have compared the current scenario to November 2020. The small-cap sector started skyrocketing then and continued to add to its gains in the months that followed.
Happel and Allemann believe a similar situation could happen in the cryptocurrency market, as investors take some of the profits from crypto giant Bitcoin and invest them in Ether and other alternative cryptocurrencies. In such a scenario, BTC takes a breather while altcoins outperform expectations. “Will we see the same thing again? Will rotation create a massive rally in alts? We think that could very well happen!” they speculated.
Ripple’s XRP Steals the Show
Ripple-linked cryptocurrency XRP recently surpassed Bitcoin in the wake of the German government incessant dumping of its BTC holdings in the last weeks.
For context, wallets labeled as belonging to the German state of Saxony liquidated the 49,857 BTC seized from movie piracy website Movie2k in January, worth over $3 billion in sales pressure. In addition, the current refund of approximately 140,000 BTC creditors of the now-defunct cryptocurrency exchange Mt. Gox has reduced traders’ interest in Bitcoin.
BTC price briefly surged above $59,000 on Thursday before collapsing to $58,630 at press time after a failed assault on the $60,000 level. XRP, on the other hand, rallied by a surprising 10.7% on Saturday after the CME Group launches real-time indices and benchmark rates for the Ripple affiliate token.