The Bitcoin price ascended to a record high, vaulting over a commemorative milestone at $60,000. Yet, crypto analysts still struggle to wrap their heads around the occurrence as they try to predict the future.
While you might be one of those who missed the Bitcoin train and are now searching for alternatives to maximize gains on altcoins, here’s what you should expect before diving into it.
How Does the Crypto Market Move?
Supply and demand are one of the critical elements that drive the crypto market. Still, different factors are influencing the levels of supply and demand. For example, during bull markets, we see retail and institutional investors entering the market and increasing the buying pressure on Bitcoin.
Once Bitcoin reaches the top (which is not easy to catch), traders move their BTC to altcoins expecting to increase their profits even further. That happened in 2017 after the bull market and could also occur in the future.
One thing for sure is that the crypto prices move in parallel to market trends. For example, when Bitcoin price soars, altcoins usually follow; the same thing happens if Bitcoin falls. At times, some altcoins may move higher than Bitcoin in terms of percentage gain.
Why Bitcoin Keeps Hitting All-Time Highs?
During this bull market, analysts suspect two main factors are pushing Bitcoin to a higher high: demand from institutional investors and more money printing from governments after the COVID-19 pandemic.
Recently, institutional investors such as MassMutual, MicroStrategy, Tesla, and Square have purchased Bitcoin (BTC). The number of companies and firms entering the market could grow exponentially in the coming years, boosting the public’s confidence in cryptocurrency and pushing the BTC price even higher.
It is worth pointing out that Bitcoin’s limited supply and the halving events play a vital role in Bitcoin’s price. Imagine the demand grows and the new issuance of BTC decreases over time; it’s quite likely to see the digital currency hit new all-time highs again.
How Altcoins React to BTC’s Bull?
The cryptocurrency market usually revolves around the sentiment towards Bitcoin. However, it is not a surprise for altcoins to outperform Bitcoin during the altcoin season. According to research, almost 75% of the top 50 altcoins have outgrown Bitcoin’s growth.
Thus, an apparent trait shows that when Bitcoin hits new all-time highs, altcoins are very likely to follow. However, the growth still highly depends on the trading volume and liquidity.
There are over 5,000 altcoins available today, but what’s truly worth your time? And which token has a good return on investment?
Here are some of the highlights:
As the video streaming market continues to grow and video streaming sites like YouTube rolling out more barriers, the Theta blockchain could serve as an excellent alternative for content creators and viewers to upload and stream fast and easily. Besides, Theta also allows peer-to-peer sharing of bandwidth and earns TFuel while streaming; it’s only a matter of time for THETA price to soar.
Chiliz is one of the largest blockchains for esports and gaming crowdfunding. It aims to give sports and esports fans the ability to crowd-manage their favorite teams, games, leagues, and events. Chiliz aims at offering a platform to offer tokenized solutions to companies and individuals.
With the expansion of NFTs, Decentraland is a virtual world where users can buy, sell, and develop LAND. It is a non-fungible ERC-721 token that represents the ownership of virtual land in the Decentraland. Generally, Decentraland is controlled via DAO, which owns the most important smart contracts and assets of Decentraland.