While Bitcoin continued its unstoppable rally by exceeding $ 57,000, investors also focused on what the altcoin rally would start.
Good news for investors came from Bitfinex analysts. Bitfinex analysts said in a recent report that the market could be at the beginning of an altcoin rally due to the recent performance of Ethereum (ETH).
According to analysts, the revival in ETH and its price is reigniting investors' interest in the broader altcoin market, indicating that investors' focus is shifting from Bitcoin to altcoins.
“Investors' focus has shifted to Ethereum with its recent performance. ETH's recent rally occurred in conjunction with several key events in the Ethereum ecosystem.
These events include expectations of possible SEC approval of a spot ETH ETF, the upcoming Dencun upgrade, the anticipated launch of various scaling solutions, and the introduction of staking platforms such as EigenLayer.
“These developments are perceived as important catalysts for Ethereum's resurgence, especially after a period where it lagged behind BTC in terms of percentage growth for several months.”
“Altcoin Rally May Be Beginning!”
Analysts pointed out that this increase in Ethereum increased speculation among investors that the altcoin rally may be starting and said:
“Ethereum has gained significant momentum. At this point ETH has surpassed the $3,000 mark and is poised for its highest weekly close in 97 weeks.
This surge is fueling discussions about the potential start of 'altcoin season', a phase in which alternative cryptocurrencies eclipse Bitcoin.
Additionally, the Ethereum foreign exchange reserve across all exchanges has seen a net outflow exceeding 800,000 ETH, indicating a strong supply shortage that could further increase the ETH price.”
Analysts recently claimed that if history repeats itself, Bitcoin (BTC) dominance stabilizing at its current level of just over 51% could herald a new altcoin season.
*This is not investment advice.