Crypto Market Outlook : Investor Interest Shifts Towards Altcoins: Is an ‘Alt Season’ Here?

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Altcoins have taken center stage as they outperformed Bitcoin (BTC) with gains ranging from 5% to 10%. Meanwhile, Bitcoin has remained relatively stable at around $35,000. This resurgence in altcoins has sparked discussions about the possibility of an “altcoin season.”

XRP, LINK, and DOGE Lead the Way

Major altcoins are holding onto their impressive gains, reflecting a renewed risk appetite among crypto investors. Ripple’s XRP made significant strides, jumping nearly 10% in a day. 

This surge was attributed to key approvals that allowed Ripple to operate and offer services in Georgia and Dubai, propelling XRP to become the fourth-largest cryptocurrency by market capitalization, surpassing Binance’s BNB.

Other prominent altcoins like Cardano’s ADA, Avalanche’s AVAX, Dogecoin (DOGE), Chainlink’s token (LINK), and UniSwap’s token (UNI) have also seen positive movements, recording gains between 5% and 6% in the past 24 hours. 

Additionally, the token of non-fungible token (NFT) marketplace Blur (BLUR) saw an impressive 32% increase in one day, doubling in value over the past month. This surge aligns with the platform’s plan to distribute 300 million tokens in an upcoming airdrop on November 20.

Bitcoin’s Influence Wanes as Altcoins Shine

The declining dominance of Bitcoin in the cryptocurrency market signals the potential for an altcoin season. However, the bitcoin’s market capitalization dominance has fallen from 54.3% in late October to 52.5% on Monday, indicating growing interest in altcoins. 

This shift towards riskier assets comes as the Federal Reserve considers ending its rate-hiking cycle.

Investment advisory firm ByteTree believes that an “alt season” may be on the horizon. They’ve adjusted their model portfolio, reducing Bitcoin’s weight and adding altcoins like NEAR’s token (NEAR), Stacks (STX), LINK, and XRP. 

According to data from Blockchaincenter, 57% of the top 50 digital assets have outperformed Bitcoin in the past 30 days, and 33% have done the same over the past 90 days. These figures come close to the widely recognized 75% threshold that often signifies the commencement of an altcoin season.