Emily Walker
The price of Bitcoin is experiencing significant growth, fueled by the selection of supportive figures for crypto-related roles in the incoming government under President Donald Trump.
Bitcoin Surpasses $100,000
Following the announcement of Paul Atkins as a likely candidate for the SEC position, creating a shift as current chair Gary Gensler prepares to leave, Bitcoin has successfully exceeded the $100k threshold. This surge has also sparked a wider interest in altcoins.
Google Trends indicates a substantial rise in altcoin searches, which peaked at 100 on November 30th, stirred by both the recent election and the selection of crypto advocates. Interest remained strong at 88 by December 4th, reminiscent of the 2021 altcoin surge.
Rising Interest in Altcoins Since November
An uptick in search activity has historically signaled greater investor engagement, which typically drives price increases. Current altcoin interest mirrors trends observed during the bullish period of 2016/17, where heightened interest often follows Bitcoin’s price stability or testing of new peaks.
In addition to rising interest, several altcoins have seen notable price increases this month. For instance, XLM and XRP have seen their values jump fourfold, though still below past records. Conversely, Tron (TRX) and Binance Coin (BNB) have reached new price levels, indicating a broader market focus.
Indicators Favoring Altcoin Season
Market experts are increasingly analyzing various indicators to assess overall market sentiment. Jamie Coutts, Chief Crypto Analyst at Real Vision, noted that while Bitcoin’s recent performance is important, it isn’t the sole indicator predicting an upcoming altcoin rally.
Coutts emphasized that examining the trading volume of tokens can provide deeper insights into the altcoin space. He also tracks the Altseason Indicator, currently at 67%, indicating a consolidation phase for altcoins.
Folks, Altseason isn’t determined by the #Bitcoin dominance chart—it’s all about market breadth, like the number of assets outperforming $BTC.
In my view, when my Altseason Indicator crosses above 50% and the market is trending upward, that’s Altseason. Right now, the indicator… pic.twitter.com/ZsFGHTjpFK
— Jamie Coutts CMT (@Jamie1Coutts) December 2, 2024
Observations from CryptoQuant’s CEO on Trading Volume
Ki Young Ju, the CEO of CryptoQuant, shared insights on market movements, indicating that the transfer of assets from Bitcoin to altcoins is no longer the primary market driver. He pointed out that the surge in trading volume for stablecoins and their associated pairs represents the true momentum behind altcoin price movements.
This growth in stablecoin trading volume reflects an expansion of use cases within the altcoin market.
Featured image from NullTX, chart from TradingView