Bitcoin continues its impressive price rise after incoming US President Donald Trump made several crypto-friendly picks for his next cabinet.
Bitcoin Breaks Beyond $100K
Hours after announcing that he will likely appoint Paul Atkins to the post of the Securities and Exchange Commission (SEC) and the current chairman Gary Gensler stepping down on opening day, Bitcoin made another move, finally breaking the $100k mark. And this threat to the world’s top crypto has spilled over to altcoins.
Bitcoin breaking the $100k barrier today. Source: Coingecko
According to Google Trends, the interest in “altcoins” increased significantly last November 30, hitting 100, supported by the post-election frenzy and the nomination of crypto-friendly people. On December 4, it reached 88 out of 100, matching the enthusiasm of the 2021 altcoin season.
Altcoin Searches Began to Increase in November
Interest in altcoins and Bitcoin began to grow in November in anticipation of a second Trump administration. The public’s excitement is reflected in Google Trends, with searches for altcoins reaching 93 in November before falling to 56 in the second week.
Searches for "altcoins" up from Nov 4 to Dec 4. Source: Google Trends
The increase in search volume was primarily due to investor participation, which is the industry’s leading factor in price increases. Today’s attention on altcoins compares to the bull cycle of 2016/17. Market observers say that this cycle of interest in popular altcoins occurs when the price of Bitcoin stabilizes or a new high is tested.
Despite the interest spike, other altcoins have registered huge gains. For example, XLM and XRP prices quadrupled this December but still remain at all-time lows. On the other hand, Tron (TRX) and Binance Coin (BNB) have hit highs, suggesting increased market attention.
Seasonal Altcoin Indicators in Love
Market analysts and analysts now pay attention to trends and other indicators to assess market conditions. Jamie Coutts, Senior Crypto Analyst for Real Vision, shared that the recent Bitcoin price performance is not the best indicator of a potential altcoin boom.
Coutts added that the value of trading tokens provides a better understanding of the altcoin market. The Real Vision analyst also relies on the Altseason Indicator, which has a current value of 67% and suggests a consolidation phase for altcoins.
Folks, Altseason is not decided by #Bitcoin dominance chart—it’s all about the scope of the market, like the number of top-performing assets $BTC.
In my opinion, when my Altseason Index falls above 50% and the market is trending higher, that is Altseason. Currently, the indicator… pic.twitter.com/ZsFGHTjpFK
– Jamie Coutts CMT (@Jamie1Coutts) December 2, 2024
CryptoQuant CEO Sees Spike In Trading Volume
Meanwhile, CryptoQuant’s Ki Young Ju also shared his thoughts on the recent price action, saying that asset transfers from BTC to altcoins are no longer the main driver of the market. Instead, he mentioned the increase in the trading volume of stablecoins and their market capitalization as the true drivers.
Few argue that the increase in stablecoin trading volume explains the current movement of altcoins. If there is an increase in the trading volume of an altcoin, it also means that the use cases are increasing.
Featured image from NullTX, chart from TradingView