Catenaa, Saturday, December 07, 2024- AsBitcoin remains just below its all-time high of $100,000, trading around $96,000, but traders are increasingly turning to altcoins for larger gains, reports indicate.
Analysts say that renewed optimism following Donald Trump’s election victory and promises of crypto-friendly regulation have spurred a dramatic rally in alternative cryptocurrencies.
Bitcoin’s bull run in November was fueled by speculation that Trump’s pro-crypto administration would implement favorable regulatory changes. The flagship cryptocurrency surged nearly 40% in the month, briefly hitting a peak of $99,645.
Investor enthusiasm was driven by expectations of spot Bitcoin exchange-traded fund (ETF) approvals and a loosening of previous regulatory constraints under the new administration.
Meanwhile, XRP has skyrocketed by 400% in the past month, hitting $2.82—its highest level since 2018. Dogecoin also surged, buoyed by its association with Elon Musk and plans for a new federal agency named after the meme coin.
Solana and Tron reached new all-time highs, while Hedera and IOTA led gains among top 100 coins with 137% and 130% weekly increases, respectively.
Metaverse tokens, including The Sandbox and Decentraland, are also experiencing renewed investor interest. This shift reflects traders seeking higher returns in altcoins while Bitcoin consolidates near its milestone price.
Bitcoin’s ascent from $56,000 to near $100,000 in November was driven by a confluence of bullish factors, primarily tied to the US presidential election results.
Donald Trump’s re-election signaled a shift towards crypto-friendly policies, igniting investor optimism across the market. Expectations of reduced regulatory scrutiny, coupled with the possibility of spot Bitcoin ETF approvals under the new administration, fueled a surge in demand.
Institutional investors re-entered the market, spurred by confidence in Bitcoin’s status as a hedge against inflation and its growing adoption as a digital asset class.
The rally was further boosted by global macroeconomic factors, including dollar weakness and ongoing uncertainty in traditional markets, driving more capital into Bitcoin. Retail investors also joined the frenzy, pushing the cryptocurrency to a peak of $99,645 on November 22.
