Can Your Crypto Portfolio Beat Market With These Altcoins?

Bitcoin has pulled back from its all-time high at $108,353. However, it remains stable above the $100,000 support. More than 77% of wallet addresses holding Bitcoin are profitable. For most altcoins in the top 30 cryptocurrencies ranked by market cap, the number of profitable wallet addresses is over 70%.

Crypto portfolios leaning towards Bitcoin are currently outperforming as the largest cryptocurrency remains steady above the $100,000 milestone. With the altcoin season coming to a sudden halt ahead of the holidays, traders who hold a large portion of their altcoin holdings will likely be underwater compared to Bitcoin’s rally.

Bitcoin dominance increases, altcoin season ends

Bitcoin erased gains from its recent rally to hit an all-time high of $108,353 and is trading above $100,000. BTC dominance is an uptrend, and this likely contributed to the abrupt end of the altcoin season.

Bitcoin’s dominance is a sign of interest and demand for BTC among investors. BTC dominance is at its highest level since November 28, at 58.53%.

Bitcoin market cap dominance % daily chart | Source: Tradingview

Blockchaincenter’s altcoin index evaluates whether 75% of the top 50 altcoins have outperformed Bitcoin over the past 90 days to determine whether it is “altcoin season.” The index shows a value of 53, which means the altcoin season is over.

Bitcoin outperforms major indices

Bitcoin is up 136% year-to-date, easily outpacing the S&P 500 Index (SPX) and the Nasdaq Composite Index (NASX).

The S&P 500 index fell nearly 3% yesterday, its second-worst day of 2024, after Fed officials signaled the possibility of just two rate cuts next year. The Dow fell for the 10th consecutive trading day, its longest losing streak since 1974.

Bitcoin’s year-to-date gain remains above 136%, indicating that the asset is one of the best performers in 2024.

Earlier this month, asset management giant BlackRock recommended a 2% exposure to Bitcoin in multi-asset portfolios to benefit from BTC’s gains and balanced exposure. A risk higher than 2% could mean that the risk outweighs the benefits of including the top cryptocurrency in a portfolio.

Whales are buying these five altcoins

The activities of whales, the big wallet investors in cryptocurrency, often help identify tokens that can be earned over the long term. Historically, whale accumulation is followed by a rally in the token in the weeks/months following it, which helps guide retail traders on the sidelines.

Lookonchain’s on-chain intelligence shows that whales are accumulating Chainlink (LINK), Ethena (ENA), Hyperliquid (HYPE), Ethereum (ETH), and Ondo (ONDO).

Lookonchain detected a whale wallet withdrawing a total of 594,998 LINK worth $17.31 million from Binance, the largest centralized crypto exchange.

Donald Trump backed World Liberty Financial and whale wallets are accumulating ENA from Binance.

Between December 7 and 18, a major wallet address deposited up to 17 million USDC and purchased HYPE (worth $29.44 million including unrealized profits).

Lookonchain detected several whale addresses depositing funds to Hyperliquid to purchase HYPE and PURR tokens.

As the story of gains in the largest altcoin circulates, Lookonchain detected whale wallets piling up in Ether and Ondo this week.

Experts say Bitcoin rally could extend into 2025

Nansen Chief Research Analyst Aurelie Barthere told Crypto.news in an exclusive interview:

“Institutional asset managers, pension funds and buy-side investors can begin to integrate crypto into standard allocations; for example, one can switch from the traditional 60/40 stock-bond split to 55/40/5 (stock/bond/crypto). This stems from the feeling of “missing out” on BTC’s recent 40% rally three weeks after the election. Can investors afford to have no allocation to crypto going forward?

Proposals such as Senator Lummis’ initiative to establish Bitcoin as a reserve currency would further this trend if partially implemented (although the likelihood of this proposal being implemented is quite low in our view, especially before 2026 under the current Fed’s leadership). .

Moreover, Bitcoin’s growing role as collateral in both traditional lending and DeFi is exemplified by partnerships such as Cantor Fitzgerald’s $2 billion Bitcoin loan talks with Tether.”

Bitfinex Analysts believe there is strong institutional demand for Bitcoin, led by ETFs and spot BTC accumulation. The predictions for 2025 are as follows:

“Looking ahead, we believe the current rally above $100,000 has captured a significant portion of Bitcoin’s price increase this cycle. “Our minimum price target for Bitcoin remains between $140,000 and $200,000 in mid-2025.”

Trade Nation Senior Market Analyst David Morrison shared the following comments with Crypto.news about market participants’ sentiment:

“Fed Chairman Jerome Powell also clarified that the Federal Reserve is not currently allowed to maintain a strategic cryptocurrency reserve as some have speculated. Although it is probably unwise to gamble on the chances of a US strategic crypto reserve, this may have hurt sentiment further.

Bitcoin dropped below $100,000 overnight but has since recovered. “The positive sentiment does not appear to have been seriously damaged so far.”

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.