What is going on Crypto Market?
While Bitcoin played a crucial role in revitalizing the cryptocurrency market after a prolonged period of sluggishness, the current spotlight belongs to altcoins. In recent weeks, numerous cryptocurrencies have demonstrated stronger performance compared to BTC.
This prompts the question: Is the crypto market gearing up for another altcoin season?
In this blog, we'll explore the dynamics of this market shift and discuss strategies to capitalize on the ongoing rally. Let's delve into the details and uncover opportunities within the crypto space.
How are Altcoins Performing?
Digital assets beyond Bitcoin, commonly referred to as altcoins, have showcased impressive returns in the final quarter of the year, with some experiencing notable surges even before that period.
Despite Bitcoin's commendable 40% increase since mid-September, stabilizing above $38,000, other altcoins have outshone this growth. Solana (SOL) has witnessed a threefold increase in value, while Injective (INJ) and Chainlink (LINK) have surged by an impressive 150%. Additionally, Avalanche (AVAX), Aave (AAVE), Polygon (MATIC), and Cardano (ADA) have all surpassed Bitcoin's performance over the past 90 days. This trend underscores the noteworthy momentum within the altcoin market during this timeframe.
Top of Form
Of significant note, as Bitcoin stabilized around the $38,000 mark, the months spanning November through January witnessed many altcoins consistently expanding their gains, showcasing robust competition with BTC. Notably, Filecoin (FILE), Uniswap (UNI), and Cosmos (ATOM) have emerged as particularly active players in recent days, further emphasizing the dynamic and competitive landscape among alternative digital assets.
Why are Altcoins rising?
While altcoins are currently experiencing a prosperous period, it's essential to acknowledge that Bitcoin remains the primary driving force, wielding significant influence over the current market rally. The surge in Bitcoin's bullish sentiment since mid-October was propelled by the approval of BTC exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Additionally, Bitcoin has evolved into a safe haven amidst escalating geopolitical tensions.
Given that the broader crypto market often mirrors Bitcoin's fundamentals, the pioneering cryptocurrency served as a catalyst, prompting altcoins to sustain momentum as risk appetite increased. Despite Bitcoin's substantial market cap leaving less room for continued rallies, investors are redirecting their focus towards medium-cap and small-cap cryptocurrencies, aiming for double-digit gains, sometimes employing leverage to maximize opportunities in this evolving landscape.
Is it time for Altcoins?
While numerous altcoins are surpassing Bitcoin in terms of percentage gains, it might be premature to definitively declare the onset of another altcoin season. Although encouraging signs are evident, it remains too early for confirmation. In the crypto community, an altcoin season is typically recognized when a substantial majority (at least 75%) of the top 50 coins by market cap consistently outperform Bitcoin for a consecutive 90-day period.
Presently, we've observed this phenomenon for only a few weeks, and its sustainability is yet to be determined. Currently, 50% of the top altcoins have outperformed Bitcoin over a three-month span. While it falls short of the established criteria, it marks a robust beginning. To put it in perspective, at the close of October, only 13% of the leading altcoins were outpacing BTC, highlighting the considerable progress made in a relatively short timeframe.
How to Trade Altcoins like Pro?
Whether or not the official altcoin season is underway, the current market conditions suggest that exploring profit opportunities beyond Bitcoin might be opportune. However, it's crucial to acknowledge the heightened volatility within the altcoin space presents increased risks.
Amidst these wild price fluctuations, traders may be drawn to quick profits, yet the constant threat of substantial corrections adds complexity, particularly for those new to trading. Successful navigation of such markets requires traders to reinforce their open positions with robust technical analysis while closely monitoring market sentiment in real time. Importantly, this is not the time to stray from established trading strategies and succumb to impulsive decisions. The pressure of high volatility can potentially lead to misguided moves based on emotional reactions.
Considering the challenges, a prudent approach to capitalize on the current altcoin surge may involve relying on proven automated trading tools. These tools can provide a more systematic and disciplined approach to trading, helping to mitigate the impact of emotional decision-making during periods of intense market volatility.
Where to buy Altcoins?
Embarking on the Altcoin Rally and considering a cryptocurrency purchase? Cryptal emerges as a compelling option for your crypto transactions, offering two distinct features:
- Convert: Cryptal's Convert feature distinguishes itself as a swift and efficient solution, particularly in dynamic market scenarios where speed is of the essence. In the face of rapidly changing conditions, the ability to swiftly acquire tokens and cryptocurrencies becomes crucial. Cryptal's Convert functionality ensures users can navigate the market with agility, promptly seizing opportunities. This highlights the platform's commitment to delivering a responsive and efficient trading experience.
The Convert function facilitates a seamless and instant transformation of Altcoins into diverse fiat assets, allowing for swift execution without the need for prior experience. This feature caters to both individuals aiming for rapid transactions and those new to the cryptocurrency space.
- Spot Exchange: Operating as a vibrant marketplace, Cryptal's Spot Exchange empowers users to engage with fellow traders interested in buying or selling crypto, particularly Altcoins. In this interactive setting, users proactively initiate transactions by placing bids and patiently awaiting approval of their buy orders.
A notable feature of the Spot Exchange is its ability to ensure acquisition at the best available price, making it particularly suitable for experienced traders navigating the complexities of the trading landscape. This emphasis on price efficiency enhances the Spot Exchange's appeal for individuals seeking optimal outcomes in their cryptocurrency transactions.
What's even more noteworthy is Cryptal's offering of the lowest fees, making it an ideal platform for buying or selling crypto.
- Cryptal as a Bridge: This cost-effective advantage opens up the possibility of using Cryptal as a bridge, enabling users to acquire any crypto, transfer it to a crypto exchange hosting their desired altcoin (if not available on Cryptal), and exchange the bought crypto into the desired altcoin.