Altcoins Demand Rises with Bitcoin's Soaring Price

In recent times, Bitcoin has been making headlines as it continues its remarkable ascent in the cryptocurrency market. November was yet another bullish month for the leading cryptocurrency, marking its third consecutive month of success. This consistent growth in Bitcoin's value has had a positive ripple effect on the altcoin market.

Ethereum, one of the prominent altcoins, recently achieved a global all-time high, a level that had not been seen since the summer of 2022. This surge in Ethereum's price is indicative of the growing interest in alternative cryptocurrencies.

Representatives from Cointelegraph have noted that the outlook for the altcoin season remains uncertain. However, there are signs of a sustainable revival of interest in alternative coins. In November, there was a significant influx of venture capital into the DeFi (Decentralized Finance) sector, with investors collectively injecting $973 million into relevant projects. This represents nearly a 40% increase compared to October's figures.

Experts believe that this heightened activity among investors can be attributed to the Federal Reserve's pause in tightening its monetary policy. Simultaneously, traders and investors have become more actively involved in cryptocurrency futures on the CME exchange, driven by the anticipation of the imminent approval of Bitcoin spot-based exchange-traded funds (ETFs).

In November, open interest in cryptocurrency derivatives increased by 20% compared to October.

Earlier, The Economist published a report assessing Bitcoin's prospects. Specialists emphasized Bitcoin's resilience despite the collapse of the FTX platform and the Federal Reserve's aggressive monetary policy tightening throughout the past year. Last week, Bitcoin's price reached the $45,000 resistance zone, a remarkable achievement considering it was trading near $16,000 in January 2023. Experts attribute Bitcoin's stability to its decentralized structure.