The recent surge in the crypto market has been mostly backed by altcoins and speculative tokens, while the Bitcoin price consolidates around $35,000 levels.
Bitcoin Loses Market Grip
Indicators monitoring the lower half and 30 mid-tier tokens within MarketVector’s index of the top 100 digital assets have surged by 16% and 14%, respectively, in the early days of November. These gains surpass the broader index’s 4% increase and a 1% uptick in Bitcoin’s value.
Courtesy: Bloomberg
Consequently, Bitcoin’s portion of the $1.38 trillion cryptocurrency market has decreased to approximately 49%, down from its peak of 51.5% in October, as reported by CoinGecko. This decline often indicates a signal of increasing risk appetite in the market. Richard Galvin, co-founder at Digital Asset Capital Management said:
“This rally is definitely broader and more sustained than any price action we have seen since January. In an environment that’s still relatively thin in regards to liquidity, we’re seeing some material moves to the upside.”
Among smaller cryptocurrencies, XRP, associated with Ripple Labs Inc., has shown notable strength in November, with a 14% increase in its value. This positive trend is due to Ripple’s partial legal victory in the ongoing case with the Securities and Exchange Commission (SEC) regarding XRP’s classification as a security.
The setting of a November 9 deadline for a briefing schedule concerning remedies for unresolved matters in the case has triggered speculation about the possibility of a settlement in the SEC lawsuit. While the specific catalyst for this price surge is not immediately clear, it is likely that traders are responding to positive developments in Ripple’s legal situation.
BTC Price Rally to Continue
Bitcoin’s impressive 28% surge in the past month marked its strongest performance since January. This surge was largely due to expectations that the United States would soon approve the first spot exchange-traded funds (ETFs) focused on direct investments in cryptocurrency. The broader cryptocurrency market also experienced a sense of optimism, driven in part by speculation that the Federal Reserve has concluded its interest-rate hiking cycle.
The latest release of the US jobs data shows that the Fed could be done with its rate hike cycle. Analysts are also expecting the Fed to begin rate cuts as soon as March 2024.
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