Bitcoin continues its spectacular price rise after incoming US President Donald Trump made some crypto-friendly picks for his next cabinet.
Bitcoin exceeds $100,000
Hours after announcing that it will likely nominate Paul Atkins for the Securities and Exchange Commission (SEC) seat and that current Chairman Gary Gensler will resign on Inauguration Day, Bitcoin finally makes another move. surpassing the $100,000 mark. And this enthusiasm for the world’s most important cryptocurrency has extended to altcoins.
Bitcoin breaking the $100k barrier today. Source: Coingecko
According to Google Trends, Interest in “altcoins” skyrocketed dramatically last November 30, reaching 100, supported by a post-election frenzy and the appointment of crypto-friendly personalities. On December 4, it reached 88 out of 100, matching the excitement of the 2021 altcoin season.
Searches for altcoins began to increase in November
Interest in altcoins and Bitcoin began to grow in November in anticipation of a second Trump administration. The public’s enthusiasm is reflected in Google Trends, with searches for altcoins reaching 93 in November before falling to 56 in the second week.
Searches for "altcoins" up from Nov 4 to Dec 4. Source: Google Trends
Rising search volume has traditionally been attributed to the participation of retail investors, the main driver of price increases in the industry. The current attention on altcoins is comparable to the 2016/17 bull cycle. Market watchers say this cycle of interest in popular altcoins occurs when the price of Bitcoin is stable or new highs are being tested.
Aside from a surge in interest, some altcoins have posted substantial gains. For example, XLM and XRP prices quadrupled in December, but are still below their all-time highs. On the other hand, Tron (TRX) and Binance Coin (BNB) have reached new highs, suggesting increased market attention.
Favorable Altcoin Season Indicators
Market analysts and commentators are now paying attention to trends and other indicators to gauge the market mood. Jamie Coutts, chief crypto analyst at Real Vision, shared that Bitcoin’s recent price performance is not the only best indicator of a potential altcoin rally.
Coutts added that the number of tokens traded offers a better understanding of the altcoin market. The Real Vision analyst is also confident in the Altseason indicator, which has a current score of 67% and suggests a consolidation phase for altcoins.
Friends, the peak season is not determined by the #Bitcoin dominance chart – this is the breadth of the market, such as the number of assets outperforming $BTC.
In my opinion, when my Altseason indicator crosses above 50% and the market is trending up, that is Altseason. At this time, the indicator… pic.twitter.com/ZsFGHTjpFK
– Jamie Coutts CMT (@Jamie1Coutts) December 2, 2024
CryptoQuant CEO Sees Increase in Trading Volume
Meanwhile, Ki Young Ju of CryptoQuant also shared his opinion on the recent price action and said that the transfer of assets from BTC to altcoins is no longer the main market driver. Instead, he cited the increase in trading volume of stablecoins and their market peers as real drivers.
Young argued that the increase in stablecoin trading volume explains the current movement of altcoins. If there is an increase in altcoin trading volume, it also means that the use cases are expanding.
NullTX Featured Image, TradingView Chart
