Outlook for the Day: Return to Altcoins Has Begun

CoinDesk 20 Index: 3,273.75 +7.19%

Bitcoin (BTC): $98,833.89 +1.06%

Ether (ETH): $3,356.95 +1.95%

S&P 500: 5,948.71 +0.53%

Gold: $2,707.27 +1.42%

Nikkei 225: 38,283.85 +0.68%

Bitcoin (BTC) is inching closer to $100,000, although its momentum has slowed. The cryptocurrency, which broke another record yesterday at $99,500, is currently hovering around $98,000. While BTC rose 1% in the last 24 hours, the CoinDesk 20 Index, which considers major cryptocurrencies, gained over 7%. Most alternative cryptocurrencies (altcoins) on CD20 outperformed BTC. This indicated that as bitcoin’s speed slowed down, investors preferred altcoins. The $100,000 price point forms a key resistance level from which investors can take profits. Research platform 10x Research reports that BTC is likely to rise to $115,000 by Christmas, supported by the expansion of stablecoin supply, inflows recorded by ETFs, and inflows recorded by BlackRock’s spot BTC ETF (IBIT) as an option.

Altcoins are starting to shine as regulatory hurdles prepare to clear. Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), will leave his post on January 20, the inauguration date of President-elect Donald Trump. Industry participants hope the agency will be more open to approving investment products for smaller tokens and allowing staking for ETFs in the new era, which is already reflected in the prices of cryptocurrencies. XRP led the rally, gaining 33% in the last 24 hours, while Cardano’s ADA rose over 15%. Solana’s native token (SOL) reached a new all-time high above $260, becoming the first large-cap altcoin to surpass 2021 market highs.

Charles Schwab, one of the giant names in the financial services industry, stated that they want to offer crypto services directly to users. Stating that they are encouraged by the changes in the regulatory environment, Rick Wurster said, “We have been waiting for a change in the regulatory environment for a long time, and we hope that this will happen in a short time.” Another company that was encouraged by the developments was Bitwise. The digital asset manager has officially joined the race to launch a spot-based SOL ETF in the US.

Investors are flocking more to decentralized exchanges in anticipation of friendlier crypto regulatory policy being adopted during Donald Trump’s presidency. Volumes on major DEXs hit a record high of $72.6 billion last week. Solana-based Raydium alone accounted for 44 percent of this total. Source: Artemis