According to U.Today, Jan Happel and Yann Allemann, cofounders of the cryptocurrency analytics platform Glassnode, suggest that another altcoin season may be approaching. The analysts highlighted a recent 2% decline in the tech-heavy Nasdaq index, while the iShares Russell 2000 ETF (IWM), which includes small-cap stocks, rose by more than 3%. This trend indicates that investors are favoring riskier assets with the potential for higher returns.
The analysts compared the current market conditions to those of November 2020, when the small-cap sector began to surge and continued to gain momentum in the following months. They believe a similar pattern could emerge in the cryptocurrency market, with capital potentially rotating into altcoins. "Will we see the same again? Will rotation create a massive rally in Alts? We think that may well happen!" the analysts stated.
In related news, the Bitcoin market recently entered "extreme fear" territory for the first time in over a year, influenced by selling in Germany and Mt. Gox repayments. Despite positive macro-financial signals, such as lower-than-expected U.S. inflation, Bitcoin's price struggled to surpass the $60,000 resistance level. Amidst this, XRP distinguished itself with a 4% price increase over the past 24 hours, following the introduction of CME Group's real-time indices and reference rates for Ripple-affiliated cryptocurrencies. XRP is currently the best-performing cryptocurrency in the top 100, while Bitcoin's dominance stands at 50.9%, according to CoinGecko data.