SOL and AVAX Spearhead Crypto Revival, Bitcoin Surpasses 50-Day Average

Jonathan Stoker Jan 30, 2024, 12:15pm 138 views

SOL and AVAX Spearhead Crypto Revival, Bitcoin Surpasses 50-Day Average

Altcoins Surpass Bitcoin and Ether:

Altcoins are currently exceeding the performance of both bitcoin and ether, indicating a shift in investor focus beyond the major cryptocurrencies. Despite expectations, The Fed is likely to maintain current rates this Wednesday. Some predict this could have positive implications for bitcoin.

The total crypto market has seen a significant increase, jumping to $1.74 trillion from $1.74 trillion in only a week. This boost is majorly due to the growth of alternative cryptocurrencies (altcoins) such as (SOL), (AVAX), and (ICP).

Velo Data Insights:

According to data from Velo, SolanaSolana$104 5.03%'s SOL has shown an impressive rise of 27% to $103. This growth nearly counteracts the losses seen after the introduction of spot-based bitcoin exchange-traded funds (ETFs) in the U.S. on January 11. SOL's rally can be attributed to increasing user interest in Solana-based trading aggregator JupiterJupiter information" data-id="5052">JupiterJupiter$0.0058 -4.87%, which surpassed $500 million in volumes on Monday, overtaking leading decentralized exchange Uniswap.

The Rise of AVAX and Other Altcoins:

AVAX, the native token of EthereumEthereum$2,315 -2.42% rival Avalanche, has shown a rally of over 25% in one week. Other tokens such as ICP, NEAR, DOT, and XMR have all added between 13% and 22%. BitcoinBitcoin$42,260 -0.64% (BTC), the largest cryptocurrency, has gained almost 10% and is trading above the important 50-day simple moving average at $42,870. Meanwhile, Ethereum's native token, ether (ETH), has risen by a relatively small 0.6%. This underperformance can likely be attributed to market makers trading against the price shift, thus limiting price volatility.

Optimism for Bitcoin:

According to Alex Kuptsikevich, a senior market analyst at FxPro, the consistent positive performance of altcoins over the last six days is fostering optimism for bitcoin, potentially setting it up for a test of $46,000. Kuptsikevich suggested that bitcoin's rise above the 50-day average is significant, but it doesn't solidly confirm a bullish trend. He further commented that the outperformance of altcoins could be temporary and advised against anticipating sustained demand for smaller altcoins or meme coins this year.

Focus on Fed Decisions:

Attention now turns to the U.S. Federal Reserve, which will announce its rate decision on Wednesday. Following the announcement, Chairman Jerome Powell will give a press conference to explain the rationale behind the decision. Current markets anticipate a first rate cut in May, shifting from the previously expected March. The focus is now on how quickly policymakers intend to reverse the 11-rate-hike streak that began in March 2022 and peaked in June 2022. Market sensitivity to the Fed's tone is high, with a dovish shift potentially facilitating risk appetite and directing more capital into Bitcoin and related ETFs.

Edited by Jonathan Stoker

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