Coinbase Sees Rising Altcoin Interest As Traders Prepare For Big Moves

Christian Encila

4 months ago

3 mins read

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A popular cryptocurrency exchange platform foresees an outsized market rally for altcoins in the upcoming weeks after Donald Trump assumes the US presidency on January 20. A Coinbase analysis urged crypto traders to start positioning themselves in the altcoin space as a potential huge rally concerning altcoins is on the horizon.

Coinbase Reports Rise Of Altcoins

Coinbase crypto exchange suggested that the upcoming massive market rally for altcoins could be on the way and might happen in the succeeding weeks after Trump returns to the White House.

The crypto exchange released its latest weekly market commentary which provided its insights on Trump’s upcoming inauguration and its impact on the cryptocurrency landscape, saying that although the incoming American president is pro-crypto, it might take a while before “all planned crypto-related policies on the agenda” will be fully implemented.

However, Coinbase analysts noted that after Trump’s inauguration on January 20, they are expecting a surge in altcoins since, they believe, the digital asset space is preparing for a massive altcoin rally.

The crypto exchange’s report stated that crypto traders might be strategically positioning themselves to fuel another growth spurt for altcoins under the Trump administration.

According to Coinbase, the latest surge in altcoins is driven by a slight drop in the dominance of Bitcoin.

“The drop in BTC dominance from 58.5% to its support level of 57.3% during the inflation print relief rally on January 15 suggests to us that traders may be positioning for an outsized altcoin market rally on the back of positive catalysts for risk assets and crypto,” Coinbase explained in the report.

BTC’s Fading Dominance

A crypto analyst observed that the dominance of the world’s most popular cryptocurrency, Bitcoin, could be slightly dipping, a circumstance that allowed the latest altcoin pump.

“Importantly for the long tail, $BTC dominance has been slowly fading since late November ’24 – fireworks if that continues,” VC firm Placeholder partner and former ARK Invest crypto lead Chris Burniske said.

Importantly for the long tail, $BTC dominance has been slowly fading since late November ’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 the Deribit options contracts.

“The max paint point for Deribit BTC options expiring on January 31 and February 28, 2025 is $94K and $98K respectively. However, this drops to $80K for the March 28 expiry. While not a pure prediction of future price action, the max paint point suggests possible biases in market positioning by market makers and options sellers who may be hedging their liabilities,” the crypto exchange analysts said in the weekly commentary.

Total crypto market cap currently at $3.5 trillion. Chart: TradingView

Stablecoin Inflows A Cue

Crypto analysts observed that stablecoins posted strong inflows, which Coinbase analysts David Duong and David Han suggested as an indicator that a bullish market could happen to altcoin.

The analysts added that a big chunk of stablecoins’ strong capital inflows went to altcoins while Bitcoin and Ethereum recorded outflows.

“Stablecoin supply – perhaps the most clear proxy for capital flows to these long tail assets in our view – increased by $1.3B last week, a continuation of trends we’ve observed 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 at $206 million.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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