The price of Bitcoin (BTC) has remained stable, trading within a certain range over a relatively long period of time. The current price of BTC is $96,175, down 2% in the past 24 hours. Its 24-hour low and high prices are $94,482 and $97,741 respectively. The market capitalization of Bitcoin is $1.9 trillion, with a trading volume of $72 billion and a market share of 54.65%.
December market outlook: Correction or surge?
First, from the perspective of BTC's market cap dominance, there is indeed some room for a pullback. But this also means that Altcoins may see a certain amount of catch-up space. After all, the decline in BTC's market cap dominance will directly drive the rise in Altcoin market cap dominance.
The December market is not solely dictated by BTC. Various economic data, interest rate decisions, and the moves of major companies will have a profound impact on the market. For example, whether Microsoft will adopt BTC as a reserve asset for the company will undoubtedly increase the buying power in the market, but it may also increase the volatility of the market.
Why have old-school Altcoins started to rise across the board recently? Has the "buy new, not old" effect worn off?
The main reason is the favorable policy from Trump. He hopes to cancel all capital gains taxes on cryptocurrencies issued by US companies. This means that the profits made by US investors holding ADA, ALGO, XRP, HBAR and other crypto assets will be completely tax-free, as the creators of these coins are US companies.
On the Coinbase exchange, the top-ranked spot trading volume is actually XRP, with its trading volume equal to the sum of BTC, ETH and DOGE, indicating that the FOMO sentiment of US investors has already emerged. XRP's market cap has also hit a new high, returning to the top three, and it also plans to issue a new stablecoin. The trading volume of XLM's Stellar has also surpassed SOL, and XLM is an old project launched in 2014 that had plunged 90% in the past four years, but has recently surged back to a new all-time high.
Based on the current trend, as ETH rises, funds are starting to flow into Altcoins on exchanges, so it's best not to switch out of previously held Altcoin projects, as they are likely to see a wave of rotation. The reason why there was no Altcoin season before was the lack of new capital inflow in the market, but with the Fed's continued rate cuts, the incremental capital in the market is gradually increasing.
Although many exchange tokens are junk, they will still be picked up and speculated on. However, picking up these projects also has its methods. Currently, the best speculative targets are two types: newly listed meme coins and some reactivated old coins. The ones that have risen the most recently are also the old coins of 2017 and the new meme coins of this year, because they have the least supply pressure.
Has the spring of Altcoins arrived?
With XRP taking the lead and surpassing SOL to climb back to the third place in market cap ranking, the valuation ceiling of the Altcoin market has been completely opened up. This means that more related Altcoins in various sectors will have the opportunity to take off.
For example, the top MEME projects like Pepe, Doge, and SHIB; the DeFi projects like UNI, AAVE, LINK, CRV, and ENS; as well as the public chain projects like SOL, SUI, and ALGO. These projects are expected to shine in the upcoming market.
Especially for those small projects with market caps of 200-300 million, their subsequent explosive potential may exceed expectations. I expect that these projects achieving 10x gains in the future is a normal level.
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