- The cryptocurrency futures market is undergoing a significant shift.
- Bitcoin’s value in active contracts has sunk to a two-year low.
- Crypto altcoins have become all the buzz among investors.
Bitcoin (BTC) has experienced a significant price surge this month, fueling optimism of a potential $50,000 price point by January 2024. Investors are betting on Bitcoin as a catalyst for a bull run in the coming year, driven by factors such as the potential approval of Bitcoin ETFs by the U.S. regulatory commission.
However, amid the optimism, the crypto futures market is experiencing a shift as alternative cryptocurrencies overtake Bitcoin by a wide margin.
Bitcoin Losing Ground?
On Monday, December 25, Coinalyze data revealed a change in market focus as investor interest in crypto altcoins gained momentum, overshadowing the traditional attention on Bitcoin.
The downtrend highlights Bitcoin’s share of futures open interest stands at 38%, a staggering 12% decrease from two months ago at 50%, while altcoins soar to 41% from a previous 32%.
This translates to $30.45 billion in dollar value locked in active futures contracts tied to Bitcoin, marking the lowest percentage recorded in the last two years.
Ethereum’s position was not left out, reflecting a more stable trajectory at 21%, although trailing behind the momentum exhibited by Bitcoin and altcoins.
Coinalyze’s data coincides with the growing trend among investors to allocate capital to alternative cryptocurrencies beyond Bitcoin, resulting in an evident boom in select altcoins.
December Altcoin Frenzy
The December 2023 crypto industry rally has yielded favorable gains for a diverse range of altcoins, with certain coins surpassing others in performance.
One of the top gainers is Solana, which recently surpassed $120 for the first time since May 2022. The altcoin experienced a robust 40%, climbing from $90 to $126 and earning the fourth-largest crypto spot with a market cap exceeding $51 billion.
Avalanche and Cardano also printed double-digit gains, adding over 79% and 48% in value, respectively. The proof-of-stake tokens rose above their year-long price points, shooting for new highs and yielding impressive gains.
Other altcoins, including Algorand (ALGO) and VeChain (VET), also exceeded investor expectations with outstanding performances, brewing hopes for a potential revival of the projects in 2024.
On the Flipside
- Last week, Bitcoin led the crypto inflow chart by attracting over $87 million in investment capital.
- Bitcoin forecasts have predicted a potential $80,000 price surge, contingent on the SEC Bitcoin ETF approval and the 2024 second-quarter halving.
- At press time, Bitcoin is trading at $42,689.
Why This Matters
The current altcoin rally signals the potential for a significant surge in alternative assets. However, it is too soon to conclude that altcoins will surpass Bitcoin’s dominance, considering its historical performance and enduring market presence.
Read to find out more about the millions in crypto funds influx:
Bitcoin Leads $103M Crypto Inflows Post Sell-Off Pressure
Hong Kong sets sights on spot ETFs, encourages firms to issue applications. Read more:
Hong Kong Opens Door To Crypto ETF Applications Amid US Buzz