Coinbase analysts observed a decrease in Bitcoin's dominance, which they believe may have contributed to the recent surge in altcoin prices
Coinbase analysts are suggesting that an altcoin rally might be on the horizon following Donald Trump’s inauguration on January 15, 2025.
According to the analysts, Bitcoin's dominance decreased from 58.5% to 57.3% during the inflation relief rally on January 15. This drop might indicate that traders are preparing for a broader altcoin market rally, supported by favorable conditions for risk assets and cryptocurrencies.
"This could bode well for altcoins, especially considering the strong performance year-to-date and the potential for traders to rotate into altcoins as the market recovers from the sell-off in late 2024," the analysts noted.
The analysts also highlighted the importance of stablecoin inflows, which reached $1.3 billion last week, contrasting with significant outflows from Bitcoin and Ethereum ETFs. This trend suggests that traders might be shifting their strategies under the new administration.
However, the ETH/BTC ratio reached a record low of 0.31, which might raise concerns about the anticipated altcoin rally. Similar conditions preceded a downturn in November’s altcoin season.
Some altcoins, like Fartcoin and XRP, showed strong weekly gains, with increases of nearly 100% and 30%, respectively.
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