Donald Trump is preparing to take office at the 20 January inauguration, and the crypto market is turning up a great deal of green.
Activity has surged so far with Bitcoin now back above the $100,000 price level.
However, while Bitcoin has remained stable so far, attention is shifting towards the altcoin market, with small-cap altcoins like XRP, Ethereum, Cardano and Dogecoin taking the spotlight.
This trend shows that investor sentiment is shifting, as the whales look to capitalize on the regulatory changes promised by Trump during the campaigns.
According to data from CoinMarketCap at the moment, Bitcoin is holding steady around the $102,000 mark.
This price trend came after the cryptocurrency registered a 4% price increase over the last 24 hours.
However, despite this impressive performance, the real action is in the altcoin market.
Cryptocurrencies like XRP and Cardano have posted impressive gains so far, with XRP jumping by up to 40% over the last week, and Cardano registering 18%.
All of the above shows growing investor interest in the altcoin market, fueled by speculation about the pro-crypto policies promised by Trump.
There have also been rumors of an “American crypto reserve” during the Trump administration, that could include Bitcoin and several other cryptocurrencies — even with the lack of an official confirmation.
The crypto market as a whole is flourishing, with the smaller-cap altcoins outperforming Bitcoin.
According to the $TOTAL2 index, which measures the capitalization of the altcoin market, this metric has been growing at a steady rate, after hitting a bottom of $721 billion in August of last year.
Interestingly, Trump’s election victory in November has also seen the CoinDesk20 index double:
Which is a better performance than Bitcoin’s 50% price increase within the same timeframe.
In essence, investors are gaining an appetite for riskier assets like the altcoins.
Another source of fuel for this altcoin frenzy was the recent comments from Federal Reserve Governor Christopher Waller.
Waller hinted at possible interest rate cuts in the first half of the year. This trend is expected to encourage investors to take on higher risk assets and cause crypto prices to skyrocket.
As the 20 January inauguration draws closer, a few standout cryptocurrencies are drawing attention from investors.
Some of these include:
Dogecoin has emerged as a favorite among investors, after surging nearly 25% in the last week.
The cryptocurrency now trades at around the $0.41 price level, after nearly quadrupling over the last year.
Much of this interest has stemmed from Donald Trump himself, as well as his rumored appointment of Elon Musk and Vivek Ramaswamy to lead the newly created Department of Government Efficiency (D.O.G.E.).
This move is expected to make the memecoin’s standing as a financial asset more legitimate over the years.
So far, analysts expect that Dogecoin could hit the $1 price level by mid year, provided that it breaks out of the symmetric triangle formation illustrated above.
XRP has climbed to $3.25 over the last week.
Interestingly, this is an impressive milestone, considering how the cryptocurrency has traded underneath the $3 mark since 2018.
XRP, which is renowned for its low-cost value transfers across borders has become a favorite among investors.
So much so, that even governments are starting to embrace the cryptocurrency as a source of internal transfers.
All of the above have helped XRP to claim a position as the third largest cryptocurrency by market cap.
XRP is now larger than Solana and is trumped only by Ethereum itself.
Charts show an XRP price prediction of $8–$20 within the next year.
This alone makes the cryptocurrency one of the most promising assets in the current market.
Ethereum currently trades at around $3,400 and is recovering from being oversold over the last month.
The cryptocurrency is now working on a break above the psychological $3,500 mark and could be one of the best performing cryptocurrencies soon.
Ethereum’s position as the largest player in Defi is expected to help this bullish momentum over the coming year.
Analysts like Ali expect ETH to be a top performer, with a price target of $7,000 per the latest analysis on Twitter.
On the other end of the line, Cardano’s price has crossed the psychological $1 barrier.
The cryptocurrency now trades at a current price of $1.12, and its sustainability could be a major driver of its success this year.
Technical indicators show a Cardano price prediction of $5 this year as a conservative target.
Even further, the cryptocurrency has potential for a push towards $7 if Bitcoin remains stable and the market’s conditions continue to favor the altcoins.
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