- Indicators tracking the bottom hundred tokens included in MarketVector’s top 100 digital asset index increased by 16% and 14%, respectively, at the beginning of November.
- As a result, Bitcoin’s share in the $1.38 trillion cryptocurrency market, as reported by CoinGecko, has dropped from its October peak of 51.5% to approximately 49%.
- The overall cryptocurrency market has also felt some optimism, including speculation that the Federal Reserve’s interest rate hike cycle is coming to an end.
Following the recent remarkable rises in cryptocurrencies, a slowdown is observed in the price of Bitcoin: What will happen next?
Can Altcoins Rise Despite Bitcoin?
While Bitcoin has experienced a slowdown in price, altcoins and speculative tokens have largely supported the recent surge in the crypto market. The indicators tracking the bottom hundred tokens included in MarketVector’s top 100 digital asset index increased by 16% and 14% at the beginning of November. These gains surpass the broader index’s 4% increase and Bitcoin’s 1% increase.
As a result, Bitcoin’s share in the $1.38 trillion cryptocurrency market, as reported by CoinGecko, has dropped from its October peak of 51.5% to approximately 49%. This drop is generally seen as a signal of increased risk appetite in the market. Richard Galvin, founding partner of Digital Asset Capital Management, said:
“This rally is definitely broader and more sustainable than the price movements we’ve seen since January. We are seeing some significant upward moves in a still relatively weak liquidity environment.”
Among smaller cryptocurrencies, XRP, associated with Ripple Labs Inc., showed a significant increase of 14% in value in November. This positive trend is attributed to Ripple’s partial legal victory in the ongoing SEC case regarding the classification of XRP as a security.
A briefing schedule for unresolved matters in the case has been set for November 9th, raising speculation about the possibility of a settlement in the SEC case. While the exact trigger for this price increase is not immediately clear, it is likely that traders are reacting to positive developments in Ripple’s legal situation.
BTC Price Expected to Continue Rising
Bitcoin’s impressive 28% increase in the past month marks its strongest performance since January. This rise is largely due to expectations that the United States will soon approve the first spot exchange-traded funds (ETFs) targeting direct investments in the cryptocurrency. The overall cryptocurrency market also feels some optimism, including speculation that the Federal Reserve is ending its interest rate hike cycle.
The latest U.S. unemployment data suggests that the Fed may have finished its interest rate hike cycle. Analysts also expect the Fed to begin reducing interest rates in March 2024.
