Q3 Altseason Signals Emerging, Analyst Suggests
Bitcoin’s market dominance has fallen since the recent Ripple ruling, making room for altcoins to potentially thrive in Q3. Gordon Grant, managing director of trading at Genesis Trading, points to signals indicating an upcoming altseason. He highlights the Nasdaq’s strong performance as a risk proxy that tends to coincide with altcoin success. The Nasdaq index has risen 38% since the start of the year and is approaching its all-time high. Grant notes that investors who gained from Bitcoin in Q2 may now rotate their funds into riskier altcoins like Ether. Bitcoin’s dominance dropped below 50% after the Ripple ruling, currently at 49.83%. This decline opens up opportunities for other cryptocurrencies.
Bitcoin Dominance Decline and Altcoin Growth
Bitcoin’s market dominance decreased following the Ripple ruling. Judge Analisa Torres ruled that XRP is not a security when sold on exchanges, leading to a surge in XRP’s price and making it the fourth-largest cryptocurrency. Other altcoins like Ethereum, Cardano, Solana, Polygon, and Stellar also experienced double-digit growth. TradingView data shows Bitcoin’s dominance currently at 49.83%, down from 52% on June 29. This drop signals the potential start of altcoin season, as suggested by a CryptoQuant report. However, derivative markets still reflect negative sentiment among traders despite the favorable ruling for XRP.
Potential for Memecoin Rally
The recent XRP ruling could potentially trigger a rally for memecoins. Hugh Eggar, a web3 consultant, believes that if the sale of XRP, a centralized token, is not considered a security, it can only be positive for true community memecoins. He emphasizes that the value of memecoins is determined by the strength of their communities rather than centralized efforts. As altcoin trading volumes increase, Eggar expects capital to flow into memecoins despite their high-risk nature. However, he cautions that a sudden resurgence of memecoins may be unlikely due to lingering negative sentiment and wary investors.
Hot Take: Altseason on the Horizon
The decline in Bitcoin’s dominance and the positive ruling for XRP indicate the potential start of an altcoin season in Q3. The strong performance of the Nasdaq index adds further support to this theory. Altcoins like Ether and memecoins may see increased interest and trading volumes as investors look to diversify their portfolios. While some caution is warranted due to lingering negative sentiment and the risky nature of memecoins, the overall outlook for altcoins appears promising in the coming months.
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