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Jan Happel and Yann Allemann, cofounders of prominent cryptocurrency analytics platform Glassnode, believe that another altcoin season could be on the horizon.
The analysts pointed to the fact that the tech-heavy Nasdaq index declined 2% on Thursday. For comparison, the iShares Russell 2000 ETF (IWM), an index that is composed of small-capitalization stocks, was up more than 3%.
This indicates that investors are placing their bets on riskier assets that are likely to generate greater returns.
Tomiwabold OlajideThey compared the current situation to November 2020. Back then, the small-cap sector also started soaring and kept expanding its gains during the following months.
The analysts believe that a similar scenario is going to play out on the cryptocurrency market, with investors potentially rotating their capital into altcoin. "Will we see the same again? Will rotation create a massive rally in Alts? We think that may well happen!" the analyst said.
XRP stealing show
As reported by U.Today, the Bitcoin market recently plunged into "extreme fear" territory for the first time in more than a year due to selling in Germany as well as Mt. Gox repayments.
Godfrey BenjaminThe Bitcoin price failed to take out the $60,000 resistance level despite positive macro-financial signals such as cooler-than-expected U.S. inflation.
Even though most altcoins are in the red, XRP managed to stand out, with a 4% price spike over the past 24 hours. This came after CME Group's real-time indices and reference rates for the Ripple-affiliated cryptocurrencies. It is the best-performing cryptocurrency in the top 100.
Bitcoin's dominance currently stands at 50.9%, according to CoinGecko data.
Denys Serhiichuk
Dan Burgin