BigONE Insights: The Rally Of Altcoins
The cryptocurrency market has been bullish for the most part of this year, and with the recent FOMC updates, this momentum just looks like it is beginning, and the end is in no way near. This current momentum marks an opportunity to focus on altcoins that would rally 2x/3x harder than BTC and Ethereum. The cryptocurrency market rally began in early January with a surge in heavily shorted altcoins and Ethereum (ETH) liquid staking derivative (LSD) tokens in anticipation of the upcoming network upgrade in March. As buyers began to catch up, gains began to appear across the board.
Improved macroeconomic conditions in the United States, such as lower inflation and a stable job market, provided additional tailwinds for the positive rally. Bitcoin is on track for its best January performance since 2013. Its price has risen 40% year to date from its initial value of $16,530. A short squeeze in the cryptocurrency market is also another important driver of the rally so far, as weak hands have been shaken out making the cryptocurrency industry stronger. This article would look at why altcoins are currently outperforming Bitcoin in terms of gains, and potential altcoins to look at in the near future.
Why Altcoins Are Outperforming BTC?
Cryptocurrency investors are on the lookout for new projects with relatively less market cap than Bitcoin and Ethereum so as to return a higher percentage of gains. While Bitcoin has pumped 40%, other altcoins like $Apt, $SOL, and $GALA have all done at least 200%, providing a better return on investment in the last 30 days. The safest bet during a mini-rally is to focus on the strongest altcoins especially if you are just starting out in the cryptocurrency market. A lot of investors also looking to make back their losses also focus on altcoins that are very cheap, and have the right fundamentals to pump in a bull run. The cryptocurrency market has begun to level off, with Bitcoin trading at around $23,000. In the last seven days, investors have profited by about 1% on their Bitcoin investment. Bitcoin is in a bearish mode, according to some price prediction platforms, as current sentiment has reached an all-time low.
Some experts believe that investors can profit from altcoins because the majority of them are on a tear. Pentoshi, a pseudonymous analyst with 671,300 Twitter followers, predicted the Bitcoin bull market last year. Pentoshi also predicts that blockchain scaling solutions such as Polygon (MATIC) and smart contract protocol Avalanche (AVAX) will experience massive growth. He believes that these assets appear bullish and have the potential to surge toward a key resistance level. These are some of the key reasons why altcoins are currently outperforming BTC, as the general system in a bull market is to trade altcoins for quick gains.
Altcoins Worth Looking At
- Aptos: APT/USD surpassed its previous high of around $10 during this rally, set shortly after its launch. Technically, the token is currently in price discovery mode. As a result, aside from the recent peak of $20 and the psychological level of $25, there are few sell-side resistance levels. The rally may still have wings unless the positive catalysts of the negative funding rate for perpetual swaps and the Kimchi premium cool off. Aptos, which was launched in October, is a relatively new blockchain in the space that uses the technology of Facebook/abandoned Meta’s crypto project, Libra. It has a high face value because of its executive team, which is made up of former Meta engineers who also created the Move programming language to make the chain scalable and decentralized.
APT/USD surpassed its previous high of around $10, set shortly after its launch. Technically, the token is currently in price discovery mode.