Altcoins are outperforming Bitcoin as crypto prices surge, marking a shift since 2021. Bitcoin nears an all-time high of $100,000, buoyed by Donald Trump's pro-crypto leadership. However, lingering uncertainties from the 2021 crypto collapse have left investors cautious, with altcoins historically subject to volatility.
Solana (SOL) has reached new all-time highs, exemplifying the altcoin rally since the year's start. Altcoins often outpace Bitcoin during rallies but risk steeper declines during downturns. Despite previous market setbacks like the collapse of FTX and Celsius, recent increases in trading volumes and altcoin prices show a market revival.
James Butterfill of CoinShares remains skeptical of an altcoin boom, especially with potential regulatory changes like the Bitcoin Act, which might boost Bitcoin's dominance. Political factors could significantly shift market dynamics, increasing Bitcoin's strength over altcoins.
Nikolay Karpenko from B2C2 highlights industry maturity, risk management improvements, and more strategic investors in the crypto space. Altcoin trading volumes now concentrate on top tokens, driven by factors like Solana's ETF excitement and Dogecoin's payment capabilities and Elon Musk's influence.
The possibility of Trump's administration approving more altcoin ETFs could spur institutional interest. Butterfill warns the market may start focusing on fundamentals instead of speculative trading. Despite the positive outlook on altcoins, they remain priced significantly lower than Bitcoin, such as Ethereum, at only 4% of Bitcoin's value.
Solana reached a record high of $263 but has corrected back to $240, mirroring Bitcoin's trend after hitting $99,500. Currently, SOL is up 6% while BTC is up 4% in a 24-hour frame.
