Bitcoin has been on a tear lately, just last night BTC/USD jumped above $10,000. But this time, gains in bitcoin are not spilling into altcoins.
While Bitcoin is up 5.25%, Ether, Litecoin, BNB, and BSV, are recording less than 3% gains while XRP is in the red.
As we reported, XRP recently hit a new low in the BTC market but for trader DonAlt this is where he is “on the lookout for buys.”
“Almost a year later we’re finally hitting my target area. This game is more of a patience game than anything else,” he said.
— Credible Crypto (@CredibleCrypto) May 8, 2020
But not for veteran trader Peter Brandt, who is warning people that “XRP is a manipulated market & a dead end.”
Monero (XMR) with 9.03% and NEO 7.33% gains are performing better than other top altcoins. Down the line, 0x (ZRX) 25.33%, Komodo (KMD) 25.32%, OmiseGo (OMG) 13.09%, Holo (HOT) 11.98%, and ICON (ICX) 11.43% are others leading the market gains.
ZRX, the 48th largest cryptocurrency’s price, is enjoying an uptrend just like its daily active addresses (unique address transacting) which are up a whopping 86% and has been growing since mid-April.
Overall, the crypto market has added more than $10 billion to its market capitalization today.
When Does Altcoins’ Hype Cycle Begin?
While Bitcoin has recovered all the losses from the March sell-off and is currently at mid-February levels, altcoins are still down between 14% to 34%.
With the bitcoin block reward halving next week, it makes sense that money is flowing out of altcoins as right now BTC is the center of attention and as such rallying strongly.
Besides strong network fundamentals, the news of macro investor Paul Tudor Jones buying bitcoin as a hedge against the inflation further fueled this rally. Analyst Rekt Capital said.
Bitcoin’s dominance is also on the rise while,
“Altcoin Dominance is reflective of market-wide shedding in valuation in Altcoins as investors chase the exponential Bitcoin rally ahead of the bitcoin halving.”
“Once the immediate Bitcoin Halving hype dies down, Altcoins will have reached their local bottoms.”
A similar opinion is echoed by trader DonAlt who says the altcoin market is on the verge of capitulation after the BTC pump didn’t translate into the altcoin appreciating, which is the “worst thing” for an altcoin holder.
“We’re teetering on the edge of market-wide altcoin capitulation and I couldn’t be more excited about it,” said DonAlt.
The hype cycle for altcoins is expected to be in quarter second of 2020 after they retrace to “attractive prices.”
With the odds of Bitcoin’s surge above $10,000 “increased exponentially,” another trader and economist Alex Kruger says, “Alts should follow, either with a bang or without.”