Over the past weeks, there have been regular news reports about the growth of altcoins. Dogecoin and Ripple showed the most significant results, but this was a consequence of a pump organized by communities on social networks. The very next day after the rapid growth, the charts of these coins collapsed, and many investors were left without profit or with a loss. It is obvious that the growth of the altcoin market is not caused by an artificial pump in the price of some coins with small capitalization. This is a complex process, the reasons for which are both the transfer of capital from BTC to other coins and institutional investments

The price of bitcoin has reached 93 thousand dollars for the first time in history, gaining more than 115% since the beginning of the year.

In November 2024, the market capitalization of bitcoin exceeded 1.8 trillion dollars. The coin by market value surpassed silver, and at certain moments — even the oil giant Saudi Aramco. Thus, bitcoin became the seventh largest asset by capitalization in the world.

Due to the significant rise of the meme coin sector in 2024, the total capitalization of which has increased to nearly $120 billion (a sevenfold increase since the beginning of the year), it may seem that such growth rates are sustained across the entire cryptocurrency market. And even despite the overall growth of the cryptocurrency capitalization as a whole, which exceeded $3 trillion, according to Coinmarketcap in mid-November, Bitcoin's yield outpaces that of most major cryptocurrencies.

We are currently seeing signs of an altcoin rally, with certain altcoins performing well while Bitcoin remains the dominant force in the market.

However, altcoin rallies are often shorter and involve only a few standout altcoins. These rallies tend to occur after a significant move in Bitcoin, with investors switching to specific altcoins that show great potential.

There is a global race for Bitcoin now. Whether you are a local, state or federal government official, you need to figure out how to get as many Bitcoins on your balance as possible. It is not like gold, where we can just dig up more metal from the ground. The race for Bitcoin is primarily caused by the devaluation of the US currency, which has lost about 25% of its purchasing power over the past five years." The businessman believes that Bhutan and El Salvador have chosen the right policy for accumulating the first cryptocurrency, and now the risks of Bitcoin falling below the psychologically important mark of $75,000 are practically minimized.
Earlier, Anthony Pompliano said that the first cryptocurrency has received the status of the main tool for increasing financial stability among such large companies as MicroStrategy, MetaPlanet and Semler Scientific.

Are Altcoins Really Ready for a Rise and Worth Investing in Now?

While an altcoin season seems unlikely due to the prevailing negative market sentiment, other indicators point to a possible altcoin rally. Martin noted that in the summer of 2020, when BTC was at a similar level, its price suddenly increased sixfold, leading to an increase in value from $10,000 to $60,000 per token in the second half of the year.

He views this precedent as an important signal, suggesting that altcoins may now be in the . This, in his opinion, points to a potential opportunity for traders to profit by acquiring undervalued altcoins before the market can rally.

The US has allowed the launch of exchange-traded funds for investing in bitcoin. Why is this event called epochal for the entire cryptocurrency industry? And how much can the value of bitcoin now grow?

Wood predicted the first cryptocurrency at $1.5 million in a bullish scenario by 2030. She made this statement on the first day of trading in spot bitcoin ETFs approved by the SEC.

That same month, the CEO of ARK Invest revealed that she keeps about 25% of her financial capital in digital gold. She noted that her portfolio is “almost entirely tied to innovation,” including cryptocurrencies.

In May, Wood predicted a 10-fold increase in El Salvador’s GDP during the five years of the new presidency of Nayib Bukele. She noted that this will be facilitated by the acceleration of economic reforms in the country with the help of bitcoin and artificial intelligence.

Recall that in November, after the election of Donald Trump as US President, the CEO of ARK Invest predicted an influx of investments in cryptocurrencies and new technologies after the “changing of the guard” at the SEC and FTC.

The mood in the cryptocurrency market is an important factor that influences trading. In this case, mood is the emotional component of all market participants. It determines what decisions investors and traders make, where the price of an asset will move, whether the trend will change. The mood of the crypto market is influenced by many factors, from macroeconomic to political.

The technology is available to everyone

Bitcoin is an open project. It does not belong to anyone and anyone can contribute to its development - add code, create their own cryptocurrency based on Bitcoin, create a company.

One example of such an open source company is the Linux Foundation. This is a non-profit company for the development of the Linux operating system. There is no specific person, director or CEO behind it - it is a community of people. Users decided to create a consortium to add value to the product and develop it together.

It is because of the incomparable capitalization that the stock and crypto markets differ in their reaction to news. For example, it is difficult to imagine that the problems of one, even a large, company will lead to an uncontrolled fall in the entire stock market. In the crypto market, one can see completely opposite situations. For example, the collapse of Terra Luna led to a significant (almost 10%) decrease in the rates of even top cryptocurrencies. And after the announcement of the bankruptcy of the FTX exchange in November 2022, the market, including Bitcoin, updated its lows, destroying the hopes of many participants for a quick end to the bearish trend.

Cryptocurrency Market Cycles as a Forecasting Tool
Cryptocurrency market cycles are the periods between peaks and troughs. Cycles are common to all financial markets, not just cryptocurrency. They are natural sequences that occur over and over again over time.

There are two types of exchanges on the crypto market: centralized and decentralized. The former operate on almost the same principles as exchange platforms on other markets. The only striking difference is that there are no brokers on centralized crypto exchanges (CEX). Decentralized exchanges (DEX) have no analogues on other markets. They are platforms where a buyer and seller meet, without any identification of participants. The over-the-counter crypto market is a structure that, perhaps, no specialist can describe today. The thing is that almost any resource has the ability to perform at least one operation (generation, purchase and sale, exchange) with cryptocurrencies. For example, crypto wallets and the ability to buy crypto assets for fiat currency have appeared even in electronic payment systems (EPS).

The cryptocurrency market is a decentralized digital marketplace where various cryptocurrencies, tokens, and digital assets are bought, sold, and traded. It is a global network of exchanges and platforms that facilitate the buying, selling, and speculating in digital currencies.

The Impact of Artificial Intelligence on Crypto Markets

It would not be very reasonable to think that the creation of such a unique type of cryptocurrency will not affect the state of the market in any way. Cryptocurrency coins with artificial intelligence do have a significant impact on the cryptocurrency market, introducing and optimizing the most important processes in this area.

The AI ​​industry, including services and hardware, is expected to grow 40% to 55% annually from $185 billion last year, generating revenues of $780 billion to $990 billion, Bain said.

Growth will be driven by the development of larger AI systems, larger data centers to train and run them, and companies and governments using the technology to improve efficiency.

Demand is growing so fast, Bain said, that it could create supply chain bottlenecks for components like chips. Combined with geopolitical tensions, the surge in sales could cause shortages of semiconductors, PCs, and smartphones.

Demand for chip components could grow 30% or more by 2026, putting pressure on manufacturers, Bain said. The cost of large data centers could jump from the current $1 billion to $4 billion to $10 billion to $25 billion in five years. Their capacity will grow above gigawatt from 50-200 megawatts.

The expert recalled the original vision of Ethereum as a "World Computer". According to him, the Ethereum blockchain is not just a platform for financial transactions, but a universal computing environment

Cryptocurrency is digital money that was created to allow people or organizations to transfer funds to each other without the involvement of banks or other financial institutions. Such direct payments allow you to avoid paying commissions to intermediaries and significantly speed up the process of transferring financial resources.

NFT The technology is still in its early stages, but it has already caused quite a stir online. From unknown artists to world-famous stars, everyone has started creating NFTs and trading them online, leading to the uncontrolled creation of NFT collections. Binance is looking to regulate NFT trading on its platform by placing a cap on trading NFTs priced below $1,000.

Throughout its development, the cryptocurrency industry has experienced many ups and downs. Cryptocurrency markets are still characterized by high volatility: crypto hype often gives way to crypto winters. In addition, the world of cryptocurrencies is regularly shaken by new scandals and reputational losses. Despite all these twists and turns, the cryptocurrency market is recovering and returning to its turbulent phase, allowing many to increase their financial income almost instantly.