Altcoins Surge as Bitcoin Holds Ground Above $38,000
Throughout November, Bitcoin (BTC) secured a 10% monthly gain, largely trading between $34,000 and $38,000. Despite previous attempts at breaking out being met with swift sell-offs, the leading cryptocurrency seemingly broke above this range on November's final day, marking a new yearly high at $38,800.
Ether (ETH), the second-largest crypto, experienced a 13% increase during November. Notably, it stabilized above the $2,000 mark for the first time since April, maintaining a consolidated position at that level.
With momentum slowing down for major cryptocurrencies, investors redirected profits towards riskier segments of the digital asset market. This shift is evident in the CoinDesk Market Index sector performances, with larger gains recorded compared to BTC. The culture and entertainment sector index (CNE), representative of NFT and metaverse tokens, surged by 42%, while the DeFi sector index (DCF) rose by 39% over the past month.
The broader uptrend across various crypto sectors suggests that we're currently witnessing an "altcoin season," as noted by investment advisory firm ByteTree in a recent report. Altcoin seasons refer to periods when smaller cryptocurrencies tend to outperform Bitcoin.
