A Handful of Altcoins Poised for Continued Rally, Says Santiment
Crypto analytics firm Santiment predicts that several altcoins will continue to rally as traders shift their focus from Bitcoin (BTC) and Ethereum (ETH). According to Santiment, nine altcoins, including Polygon (MATIC), Decentraland (MANA), Fantom (FTM), and Pepe (PEPE), are experiencing an increase in new wallet addresses created and rising prices. This growth suggests that these mid-cap altcoins have the potential to climb further.
Bitcoin and Altcoins Moving Away from Equities Markets
Santiment also notes that both Bitcoin and altcoins are moving away from their reliance on equities markets, indicating the possibility of an upcoming bull market. As BTC reaches new 17-month highs, crypto market caps continue to grow while the S&P500 declines. This divergence suggests that the two-year correlation between cryptocurrencies and equities has diminished, which is a positive sign for the crypto market.
Spot Market ETFs Fueling Crypto Market Momentum
The impending release of spot market Bitcoin exchange-traded funds (ETFs) is contributing to the momentum in the crypto markets. Santiment highlights the optimism surrounding these probable ETF listings as a driving force behind the current high prices of Bitcoin and other cryptocurrencies. The recent relisting of Blackrock’s iShares on the Depository Trust and Clearing Corporation has provided an additional boost.
Ethereum Shows Strength in Recent Surge
Santiment also focuses on Ethereum, stating that the leading altcoin has performed well during the recent surge in the crypto market. Whale transactions involving ETH are at a six-month high, indicating significant activity by large investors. Additionally, Ethereum’s supply on crypto exchanges is at its lowest level since 2015, which further strengthens its position.
Hot Take: Altcoin Rally Expected to Continue
According to Santiment, the ongoing rally in altcoins like Polygon, Fantom, and Pepe is likely to persist. The increased number of new wallet addresses and rising prices indicate growing interest and investment in these mid-cap cryptocurrencies. With Bitcoin and altcoins moving away from their correlation with equities markets, the stage is set for a potential bull market. Furthermore, the upcoming release of spot market ETFs is fueling optimism and contributing to the positive momentum in the crypto markets. Overall, the outlook for altcoins remains promising.
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