Tech
Crypto altcoins are outperforming with Bitcoin price “gravitating” towards $50,000
Smaller, lesser-known digital currencies are outperforming Bitcoin after the market indicator’s breathtaking surge in recent weeks.
Cardano rose as much as 30% on Friday, while Solana gained about 8% and Avalanche rose 12%. Meanwhile, Bitcoin rose about 2% and Ether fell about 1%. Together, the two largest tokens account for about 70% of cryptocurrencies’ $1.6 trillion market capitalization.
“After the huge rallies that Bitcoin and Ethereum have seen, it is no surprise that they are taking a bit of a sideways breather,” said Matt Maley, chief market strategist at Miller Tabak & Co. “However, the fact that these altcoins that today’s rally is so strong tells me that people haven’t lost their love for the asset class as a whole.”
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Solana is among the blockchains competing with Ethereum, the leading cryptocurrency trading highway, for a larger share of the digital asset business
Options traders are loading up on bets that Bitcoin will rise to $50,000 by January, when many market watchers expect the SEC to finally allow ETFs to directly hold the cryptocurrency.
“I expect the current uptrend to persist, with Bitcoin gravitating towards 50,000, where the options strikes are concentrating,” said Teong Hng, CEO of cryptocurrency investment firm Satori Research.
Bitcoin has risen more than 60% since mid-October, when speculation erupted that the Securities and Exchange Commission was on the verge of approving ETF applications from asset management giant BlackRock. The token was trading at around $44,100 on Friday.
“Bitcoin price action today shows that while it is sensitive to interest rate expectations, it is not the primary driver,” said Craig Erlam, senior market analyst at Oanda. “Cryptocurrency traders have become increasingly optimistic since it became clear that it is a question of when rather than if an ETF will be approved. Lower rates simply help this movement.”