The cost of several of the largest altcoins increased by 30% and more during the last week. The price of XRP and Stellar rose by 106% and 79%. However, it is not too late to invest in coins, experts believe.
The share of bitcoin in the digital money market fell to 62.3% in the second half of November. This is happening against the backdrop of an active growth in the value of altcoins, many of which rose in price by tens or even hundreds of percent over the week. From 18 to 24 November, the BTC price rose by 13%, while Ethereum — by 29% and XRP — by 106%. Other largest digital coins in terms of capitalization also outpaced Bitcoin over the specified period of time. For example, the Bitcoin Cash rate increased by 31% in 7 days, Cardano — by 42%, Stellar — by 79%.
“The altcoins’ season is already underway”.
The easiest explanation for the current price dynamics on the altcoin market is the deferred demand. Bitcoin rose almost to a historical high, and altcoins from mid-September to mid-November grew very slightly relative to bitcoin.
Now investors and traders have decided that it is possible to invest in altcoins, which growth potential in terms of the schedule at the beginning of the explosive growth was very high. We think it would be quite right to call this time the season of altcoins.
Now it is reasonable for cryptoinvestors to form a portfolio of different altcoins, as many of them are still very far from their historical highs. The expert also drew attention to the ongoing interest in bitcoin, which is one of the main drivers of altcoin cost growth. The started upward trend among altcoins potentially has all chances to compare in intensity with the current upward trend of bitcoins, the expert believes.
“Altcoins may approach the highs”.
Retail buyers are now entering the market, for many of whom the bitcoin price is already too high to enter. At the same time, against the background of BTC, other cryptos are still cheap, even after jumps by tens and hundreds of percent in the last week.
In recent years, the news background was mainly related to Bitcoin, now it’s really time for altcoin. Despite the proximity of Bitcoin to the highs of December 2017, the mood of the crypto markets are now at the end of 2016, when the era of altcoin and mass mining has just begun. The altcoins have just begun their upward movement and may approach their historic highs before Christmas.
But still, after the rally a correction may begin. Judging by the Bitcoin Domination Index drop by 3% per day, we have an interesting dynamic around alternative cryptocurrencies. Coins worth several cents may show the highest growth in percentage terms, as psychologically unprofessional investors are more comfortable to think that the theoretical benefit from the growth of such an asset may be much higher than coins worth hundreds of dollars.
“It is necessary to buy a placer of coins”.
There are several factors that influenced the growth of altcoins. For example, the change of administration in the White House, from which investors expect more generous monetary anti-crisis incentives, but at the same time — the liberalization of the policy towards the cryptomarket. Citigroup Bank predicted a 20% devaluation of the dollar next year, which increases the popularity of cryptocurrencies.
It is difficult to choose the best altcoins to invest in such a fussy moment. It is necessary to buy a placer of coins from the first ten by capitalization. However, special attention should be paid to Ethereum, which today is the only altcoin officially recognized in the U.S. as an exchange commodity, and which has legal derivatives. Also, BCH and LTC coins accepted by PayPal (along with BTC and ETH) have a certain advantage. But it is not worth to limit the basket only with them.
Now, the crypto market capitalization is $568 billion, not including bitcoins — $214 billion. In January 2018, the market value of all altcoins, which were issued at that time, was over $550 billion.