A popular cryptocurrency exchange platform is expecting a major market rally for altcoins in the coming weeks Donald Trump assumes the US presidency on January 20. A Coinbase analysis they urged crypto traders to start positioning themselves in the altcoin space as a potential big rally in altcoins is on the horizon.
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Coinbase reports that Altcoins are on the rise
Crypto exchange Coinbase suggested that the upcoming big market rally would be for altcoins be on the way and that could happen in the coming weeks after Trump returns to the White House.
The crypto exchange released its latest weekly market statement that provided its perspective on Trump's upcoming inauguration and its impact on the cryptocurrency landscapesays that although the incoming US president is pro-crypto, it may take a while before “all crypto-related policies are on the agenda” fully implemented.
However, Coinbase analysts noted that after Trump's inauguration on January 20, they expect an increase in altcoins since, they believe, the digital asset space is preparing for a large altcoin pool.
The crypto exchange's report said that crypto traders could be strategically positioning themselves to fuel another growth spurt for altcoins under the Trump administration.
According to Coinbase, the latest rise in altcoins is driven by a slight decline in Bitcoin's dominance.
“The fall in BTC's dominance from 58.5% to the 57.3% support level at the January 15th inflationary relief rally suggests to us that traders may be in position for an altcoin market rally outside of behind advanced promoters for risk and crypto assets. “, explained Coinbase in the report.
The fastest rate online BTC-C
A crypto analyst noticed that the dominance of the most popular cryptocurrency in the world, Bitcoin, may be slightly decreasing, a situation that allowed the latest altcoin pump.
“Importantly for the long tail, the dominance of $BTC has been slowly declining since the end of November 24 – fireworksif that continues,” said the partner of the VC company Placeholder and his former ARK Invest crypto director Chris Burniske.
Importantly for the long tail, $BTC leadership has been slowly eroding since late Nov '24 – fireworks if that continues. pic.twitter.com/PyBWTwT8os
— Chris Burniske (@cburniske) January 17, 2025
In its insight report, Coinbase provided a possible price scenario for Bitcoin through Deribit options contracts.
“Maximum paint level for Deribit options BTC ending January 31 and February 28, 2025 are $94K and $98K respectively. However, this drops to $80K for the end of March 28th. Although not a true predictor of future price action, the peak pin point indicates potential deviations in market conditions by market makers and option sellers. may lose their obligations,” the crypto exchange analysts said in the weekly statement.
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Stablecoin is going down
Crypto analysts noticed that stablecoins were posting strong inflows, which Coinbase analysts David Duong and David Han suggested as a sign that a bullish market could happen to altcoins.
The analysts said that a large chunk of stablecoins' strong capital inflows went to altcoins while Bitcoin and Ethereum recorded outflows.
“Stablecoin supply – perhaps the clearest proxy for capital flows to these long-tail assets in our view – rose by $1.3B last week, continuing the trends that have seen us over the past two months,” the Coinbase report said.
Coinbase also noted that BTC had a net outflow of $457 million while ETH's net outflow was $206 million.
Featured image from Pexels, chart from TradingView
