The altcoin market may experience active days ahead. Altcoin Daily analyst Aaron Arnold suggested in his latest YouTube video that the altcoin market is currently in a “calm before the storm” period. According to Arnold, the key development that will break this silence is Bitcoin (BTC) reaching $70,000 and Ethereum (ETH) reclaiming $4,000.
Is It the Best Time to Accumulate Altcoins?
Past data shows that the value of altcoins typically surges significantly after Bitcoin surpasses its previous peaks. This phenomenon is called the “Wealth Effect.” Bitcoin and Ethereum holders directing their gains into altcoins lead to a rally in altcoins, while new investors who feel they missed the opportunity in Bitcoin and Ethereum flock to these altcoins. This chain reaction causes a rapid increase in altcoin prices.
The analyst emphasized that Bitcoin is in a consolidation phase near its all-time highs, which could signal a significant surge. Indicators such as 45% of Bitcoin‘s supply not moving in the last six months usually point to intense accumulation before a major price increase.
Global institutional investors’ interest in Bitcoin also raises hopes for the altcoin market. When combined with developments like potential ETF approvals, investments from giants like Japan’s Metaplanet and Goldman Sachs in Bitcoin could ignite a broad cryptocurrency market rally. This rally will eventually reflect on altcoins as well.
Altcoins Expected to Rise by the Analyst
Arnold listed the altcoins he expects to gain significantly if Bitcoin and Ethereum reach certain price levels under current market conditions. The analyst expects Solana (SOL) to continue its upward trend and surpass $250. Developments such as the launch of a spot Solana ETF in Brazil and its integration with PayPal’s stablecoin support the price increase expectation.
Aptos (APT) stands out with its impressive performance, surpassing Ethereum’s daily transaction count by 50 times and Base’s by 10 times. This scalability can increase network interest and accelerate its growth.
Injective Protocol (INJ) continues to gain importance by focusing on decentralized derivatives and trading in the DeFi space. The platform’s interoperability and partnerships offer potential for significant price movements.
Associated with Telegram’s Blockchain project, Toncoin (TON) faces increased interest due to its strong community and technical developments. Its unique use case and interoperability promise future growth.
Maker (MKR) draws attention with the development of its governance and decentralized finance features. Grayscale’s launch of new funds focused on Maker shows its growing importance in the DeFi ecosystem.
