Bitcoin’s dominance has sent an important signal to altcoin investors that prices of smaller cryptocurrencies could rebound in December and attract more investments ahead of January 20.
Bitcoin (BTC) dominance, which measures Bitcoin’s ratio to the total value of the cryptocurrency market, has fallen to 56.1% below its two-year support line, meaning the market has officially entered alt season, writes popular analyst Mikybull. Cryptocurrency in X post on November 30th.
Altseason, short for altcoin season in cryptocurrency slang, refers to a collective rally in cryptocurrencies other than BTC, which tends to benefit from Bitcoin’s declining dominance.
Declining Bitcoin dominance means investors are profiting from their BTC positions and investing some of these funds into altcoins.
Cryptocurrency market trends. source: Recht Capital
Crypto investor interest has already spread to smaller assets such as Ethereum (ETH). Demand for leveraged Ethereum exchange-traded funds (ETFs) has increased by more than 160% since President-elect Donald Trump won the 2024 presidential election on November 5, strengthening analysts’ expectations that the price of Ethereum will rise above $4,000. .
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Analysts predict an XRP price of $2.57 in December.
XRP (XRP) coin, the world’s sixth largest cryptocurrency, could benefit from Bitcoin’s decline in dominance.
According to Ryan Lee, senior analyst at Bitget Research, based on the current market structure, the price of XRP could rise up to $2.57 by the end of 2024.
An analyst told Cointelegraph:
“XRP is expected to reach around $2.57 during December 2024. In particular, XRP’s price trends may be affected by the Bitcoin halving event. Historically, XRP has seen significant growth for approximately 228 days following a Bitcoin halving.”
Further progress on a potential XRP ETF would be a major price catalyst for the coin, Lee added.
Asset manager 21Shares is the third company exploring an XRP ETF and is the latest to file for one with the U.S. Securities and Exchange Commission (SEC) on November 1.
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XRP and other altcoins could also benefit from fundamental price catalysts leading into the first months of 2025.
One major catalyst will come on January 20th when SEC Chairman Gary Gensler steps down as head of the securities regulator. This could mean acceptance of more cryptocurrency-based ETFs and favorable cryptocurrency regulation.
President Trump’s inauguration ceremony on January 20 is also expected to increase investors’ risk appetite. Some analysts predicted that Ethereum would rise above $4,000 ahead of Trump’s inauguration.
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