Why Altcoin Market Struggles to Rise?
Over the past 7 days, $WIF has dropped 12%, $BONK is down 8%, $ETH has fallen 4%, $SOL has slipped 3%, and $SHIB has decreased by 2%. This widespread dip in altcoin prices is largely tied to Bitcoin's dominance (BTC.D), which currently sits at a high 58.1%.
What is BTC.D and Why Does It Matter?
Bitcoin dominance (BTC.D) is the percentage of the total cryptocurrency market made up by Bitcoin. When BTC.D is high, it means most of the money in the market is flowing into Bitcoin rather than altcoins. This often happens during times of uncertainty, as investors see Bitcoin as a safer bet compared to smaller coins.For altcoins to thrive, BTC.D needs to go down. A lower BTC.D signals that investors are moving funds into smaller altcoins, which drives their prices up. Historically, BTC.D starts to drop in the first quarter of a new year. When this happens, it usually kicks off an "altcoin season," where altcoins grow much faster than Bitcoin.That means altcoins such as $WIF, $BONK, $ETH, $SOL, and $SHIB will likely start moving to the upside significantly. However, to maximize gains, its essential to pick the highest winners. Among the most promising winners for the upcoming altcoin season, experts highlight Altura ($ALU) as a standout project.
Why Altura ($ALU) Could Be the Star of Altcoin Season
One of the most exciting projects to watch during the next altcoin season is Altura($ALU).Altura is an AI-driven cryptocurrency thats focused on revolutionizing the NFT and gaming world. By using artificial intelligence, Altura offers cutting-edge solutions that are catching the attention of both crypto and tech enthusiasts.Currently, Altura is only at a $100 million market cap, making it an undervalued gem. A 10x growth would mean reaching just a $1 billion market cap, which is considered achievable given the rapid growth of the AI and gaming industries. These industries are expanding at an incredible pace, and Alturas unique role in both sectors gives it a strong chance to succeed.What makes Altura special is not just its innovative approach but also its potential for massive returns. Experts predict it could deliver gains as high as 10x to 20x for early investors. While other coins may also rise during altcoin season, they might not provide the same explosive returns as Altura. Its focus on two of the fastest-growing industriesAI and gamingpositions it as a leader in the space.
Final Thoughts
The current struggles in the altcoin market are closely tied to Bitcoin's dominance. As long as BTC.D stays high, altcoins are likely to remain under pressure. However, history shows that this trend doesnt last forever. Once BTC.D starts to decline, altcoin season can begin, creating exciting opportunities for smaller coins.For investors looking to maximize their returns, keeping an eye on promising projects like Altura ($ALU) is essential. With its strong use of AI and its position in the rapidly growing NFT and gaming sectors, Altura could lead the next wave of altcoin growth and deliver impressive returns in the coming months. Its low current market cap makes it a prime candidate for explosive gains, offering a rare opportunity in the crypto market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read more: https://cryptodaily.co.uk/2024/12/why-altcoin-market-struggles-to-rise
Text source: Crypto Daily™
