Altcoins Drive Cryptocurrency Market Growth in November as Bitcoin Dominance Declines
Date: 2023-11-07 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Amid Bitcoin consolidation, altcoins are taking the spotlight and driving the growth of the cryptocurrency market in November. The recent surge in the cryptocurrency market is largely attributed to altcoins and speculative tokens, while Bitcoin consolidates around the $35,000 mark and loses market share.
Reduced Bitcoin Dominance:
Indicators tracking mid and low-cap altcoins among the top 100 digital assets showed impressive growth in early November. This growth surpasses the broader market index and even Bitcoin. According to CoinGecko data, Bitcoin's dominance in the cryptocurrency market has decreased from its peak in October, from 51.5% to approximately 49%. This decline may indicate a growing risk appetite among investors.
Key Factors:
Richard Galvin, co-founder of Digital Asset Capital Management, noted that the current cryptocurrency market's growth is more stable and substantial than what has been seen before. This is happening in a context where liquidity remains relatively low, and significant movements toward growth are being observed.
XRP: Legal Victory and Price Surge:
Among altcoins, XRP, associated with Ripple Labs Inc., demonstrated significant strength in November, increasing its value by 14%. This positive movement is linked to a partial legal victory for Ripple in the case against the Securities and Exchange Commission (SEC) regarding the classification of XRP as a security.
Expectations of Regulation:
The setting of a deadline for briefings on November 9 has sparked speculation about the possibility of the SEC settling its lawsuit. While the specific catalyst for this price surge is not clear, traders are responding to positive developments in the legal situation surrounding Ripple. This also illustrates how legal aspects can impact cryptocurrency markets.
Bitcoin and the Future:
Bitcoin showed an impressive 28% increase in October, driven by expectations of the approval of the first spot exchange-traded funds (ETFs) in the United States, providing investors direct access to cryptocurrency.
Market Optimism:
The broader cryptocurrency market has also experienced optimism, partially fueled by rumors of the Federal Reserve's completion of its interest rate hike cycle. The latest U.S. employment data suggests the possible conclusion of the interest rate hike cycle, and analysts anticipate a beginning of rate reduction as early as March 2024.
November has brought significant changes to the dynamics of the cryptocurrency market, with altcoins leading the growth. Influenced by fundamental shifts and expectations, the market continues to attract the attention of investors and traders.
