Altcoins News

Other digital currencies jump after bitcoin; Altcoin Season


With the fall in the price of Bitcoin and then the price of Ethereum, the strong performance of other digital currencies indicates that investors and traders are turning to coin coins in search of potential profits.

To Report Quinn Desk, research data shows that Bitcoin and Ethereum are now trading at 87% and 78% of their historical highs, respectively. Meanwhile, other digital currencies are still a long way from their historical peaks. Therefore, it can be argued that these tokens still have a high potential to achieve higher price levels.

Digital currencies market
Digital currencies market and their distance from the historical peak

“Andrew Tu, a senior executive at the Efficient Frontier think tank, says:

We saw a rise in the price of Altcoins both before and after the market correction on Monday this week; An event that has been unprecedented since 2017.

According to Andrew, the value of the Bitcoin market reached a new high on January 8 (December 19) and then began to decline. Therefore, this incident can be considered as a reason for the claim that traders have saved their profits from bitcoin trading and are now trying to enter the altcoin market.

Other digital currencies jump after bitcoin;  Alt Al Quinoa Chapter
Bitcoin market value. Source: Crypto Quantum

As you read earlier in the news, following the recent uptrend in bitcoin prices, the prevailing atmosphere of fear of falling (FOMO) in the market has caused a huge number of investors and small traders to enter the digital currency market. Some of these novices, seeing the very high price of bitcoin and unaware of the possibility of buying this digital currency in smaller units, turned to coin tools.

One of the proofs of this claim can be considered the recent double-digit growth of Ripple price (XRP). The untimely rise came shortly after the digital currency fell sharply following a complaint by the US Securities and Exchange Commission (SEC) against the Ripple Foundation. As you know, this commission claims that the XRP token is an unregistered security and therefore its sale was against US law.

“Decentralized finance tokens, or Diffie, have also performed amazingly well,” Andrew Tu said.

One of these tokens is the Synthetics token (SNX). This token belongs to a decentralized trading platform for the supply and trading of hybrid tokens, the price of which is determined based on the price of other assets. It is worth mentioning that the price of this token reached $ 16 by setting a new record yesterday (Tuesday).

According to data from the Messari analytical platform, other Defy domain tokens that have been able to show a steady uptrend in recent weeks include the MKR, COMP, COMP, AAVE, and Uniswap. UNI) noted.

However, a Norwegian-based research institute called Arcane Research issued a report yesterday warning of the risk of investing in coins.

In the report of this institute, we read:

It can be said that the effect of the upward trend of bitcoins is already reflected in the pennies; Because last week we saw their prices skyrocket.

In another part of this report, it is stated:

At the same time as the bitcoin was declining on Sundays and Mondays of this week, Altcoins saw a sharp drop in their prices; Which suggests that Altcoin investors should be more risk-averse due to their sharp price changes.

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