Select Altcoins Push Ahead as Bitcoin Surges Past $87K
By Marija Matic |
Bitcoin (BTC, “A”) has reached another significant milestone just a week after breaking past its previous all-time high.
It surged past $86,000 earlier today and is trading just above $87,000 at the time of writing. Market optimism continues to build thanks to growing anticipation surrounding a second term for President-Elect Donald Trump.
This latest rally highlights the strong momentum propelling the broader cryptocurrency market to new heights.
The global cryptocurrency market cap today is $3.01 trillion. While that’s only a 1.94% change in the past 24 hours …
It’s an over 100% change from one year ago!
In fact, the total crypto market cap is nearing the all-time high established during the last bull cycle.
I believe things are just getting started.
That’s because Bitcoin’s latest surge has market analysts looking at the $100,000 mark. Many experts — including our cycles expert Juan Villaverde — suggest that BTC could hit this psychologically important level within the coming weeks or months.
Notably, Standard Chartered has reinforced its bullish outlook on Bitcoin. And it emphasized Solana’s (SOL, “B+”) potential for substantial growth as the year progresses.
Given the current market conditions, several of the largest cryptocurrencies could be poised to break their all-time highs by Inauguration Day on Jan. 20. Though many could hit those levels before the end of 2024.
Why do I say that? Because …
This Rally Lifts Altcoins Like a Tsunami
Bitcoin’s dominance is fluctuating. While the No. 1 crypto continues its steady climb, certain altcoins aren’t just riding its coattails …they’re surpassing it during their surges!
This shift signals a broader altcoin rally gaining momentum across the market.
Here are some of the standout performers:
- Dogecoin (DOGE, “B-”) is leading the charge among the top 10 cryptocurrencies. It has surged 82% in the past seven days. In addition to the broad rally, the memecoin’s run is fueled by Elon Musk’s long-standing support and his growing ties to the incoming Trump administration, which have reignited investor interest.
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Among the smaller memecoins, Peanut the Squirrel (PNUT, Not Yet Rated) has taken the spotlight, skyrocketing 329% in a single day! As of writing, PNUT has jumped to No. 193 by market cap, now valued at $400 million.
This meteoric rise highlights the high-risk, high-reward nature of the memecoin market, with the potential for rapid price swings that attract traders looking for volatility.
- Hot on DOGE’s heels among the larger-cap cryptos is Cardano (ADA, “B+”). It has gained 79% over the past week following Charles Hoskinson’s announcement to leverage his connections with key lawmakers to help shape crypto policy in the new administration.
- In the broader top 100 cryptos by market cap, Cronos (CRO, “D+”) has stood out for its performance. It doubled in value in just one week after its parent company, Crypto.com, unveiled an ambitious roadmap for the future.
- This impressive rally has placed CRO ahead of other notable altcoins like Ethena (ENA, Not Yet Rated), which surged 82%, memecoin Neiro (NEIRO, Not Yet Rated), which rose 78% and the popular new blockchain SUI (SUI, Not Yet Rated), which climbed 68%.
Meanwhile, for traders preferring a more cautious approach, Ethereum (ETH, “A-”) and Solana are in the spotlight. Both leading smart contract platforms are experiencing strong growth, and many are trying to predict which will outperform the other in the near term.
The SOL/ETH trading pair is a key focus for those seeking rotation opportunities.
However, long-term holders need not worry about timing these rotations, as both assets have robust growth potential and are expected to continue thriving in the current market cycle.
Tokens with Potential Short-Term Obstacles
Despite the prevailing bullish market sentiment, several projects are likely to face significant token unlock events in the next seven days.
These unlock events have the potential to introduce short-term volatility, as early investors and project teams gain the ability to sell their holdings.
Here are the cryptos to watch out for:
- Aptos (APT, Not Yet Rated) faces the largest unlock event, with $123 million worth of tokens set to be released.
- Avalanche (AVAX, “B+”) will have $76 million worth of its tokens unlocked soon.
- Arbitrum (ARB, “B-”) is facing $61 million in unlocks.
However, I want to note that all three projects have reached daily trading volumes of around $1 billion. This could help absorb the potential selling pressure or make any downturns short-lived.
Arbitrum, in particular, has reason for optimism. Its $61 million in unlocks is notable but modest compared to the massive $2.32 billion that was unlocked earlier in March 2024.
What Lies Ahead
Following the 2016 U.S. presidential election, Bitcoin saw a significant rally until prices peaked in the first week of January 2017.
That was just ahead of Donald Trump’s inauguration on Jan. 20, 2017. After a brief correction, Bitcoin resumed its upward trajectory to reach new highs before March 2017:
Fast forward to now and the U.S. is preparing for its next presidential inauguration.
And, thanks to the dramatic changes the political and cryptocurrency landscape have undergone since 2017, there is a stronger optimism fueling the market this time around.
President-Elect Trump is now viewed as highly crypto-friendly. And he has made a series of promises aimed at fostering growth and innovation within the digital asset space.
Among the notable promises made by the incoming administration are:
- The dismissal of SEC Chair Gary Gensler on the first day of the new presidency.
- The cancellation of "Operation Choke Point 2.0", which targeted the crypto industry.
- The immediate appointment of a Presidential Council for Bitcoin and Cryptocurrencies, which will work to develop transparent regulatory guidelines for crypto.
- The maintenance and potential increase of the federal government's Bitcoin holdings, which are currently estimated at over 200,000 BTC or roughly 1% of the total supply.
- The release of incarcerated Silk Road founder Ross Ulbricht.
In light of these promises, the cryptocurrency market is abuzz with anticipation.
Analysts and investors will closely watch the incoming administration's policy moves, particularly in relation to regulatory clarity and promised support for the industry.
In the short term, the market is likely to react quickly to key deadlines, such as the 100-day timeline for the development of new regulatory frameworks.
Over the longer term, however, the market’s performance will depend on how effectively these policy changes are implemented and their real-world impact on the digital asset ecosystem.
As the inauguration draws nearer, the broader cryptocurrency market appears poised for a strong finish to the year, with optimism surrounding the new administration's crypto-friendly stance fueling bullish sentiment.
Regardless of how you feel about the outcome of the election, the crypto markets are heading higher.
I hope you’re ready for this ride.
And I hope you use all the tools available on our website to stay up to date on all of crypto’s fast-paced moves, including our Weiss crypto ratings. You can learn more about how they work and what they mean by clicking here.
Don’t forget: You can add your favorite cryptos to your watch list to get notified of any price changes or ratings updates.
Just search your crypto of choice and click on it. Then, on that coin’s page, you’ll find the My Lists and My Alert buttons at the top, right under the rating and real-time price.
And of course, I hope you keep up with all the timely updates in your Weiss Crypto Daily newsletter.
Best,
Marija Matić