Cardano And Solana Lead The Race For Altcoin Investment Amidst Bitcoin’s Rally
The crypto market’s most recent price rally has finally begun to draw increasing investor confidence. This price surge has seen altcoins begin to steadily rise on the back of a Bitcoin breakout earlier in the month.
Following the crash late in the month of May, crypto holders and analysts alike watched as BTC prices plummeted, dragging the rest of the market down with it to a low point just below $30,000. Since then the price has rallied touching above $50,000 before a sharp drop again had crypto enthusiasts scrambling to empty their bags lest be caught in a similar situation to that of May.
Recent developments however have seemingly nullified those fears. Bitcoin suddenly broke out above the $50,000 range and has since managed to hold it. Following this, altcoins have also continued the previously stalled rise and institutional investments seem to be pouring in. As it stands, Cardano and Solana are leading the charge for altcoin investments attracting $12.5 million and $3.5 million worth of inflows according to CoinShares.
The premier cryptocurrency Bitcoin is, as expected, the frontrunner of the investment race, having attracted the majority of investment inflows. Although the current price rally can be pointed to as a major source of investor confidence, a separate culprit is also responsible in part for this surge in investment.
A Potential Bitcoin ETF?
Amidst seemingly positive reception in the United States and in particular SEC chair Gary Gensler, pro-bitcoin sentiment seems to be continually rising. Positive statements about Bitcoin by Mr. Sensler have driven talk of a Bitcoin ETF to the forefront of crypto conversation in the U.S. Should this ETF ever be approved, it would have very positive connotations for Bitcoin and the larger crypto market, potentially driving prices up astronomically.
With this in mind, it then comes as no surprise that the SEC chair’s pro-crypto sentiment has translated into continuous inflows for Bitcoin.
Ethereum Records Outflows As Q4 2021 Begins
Ethereum, the number two coin by market cap and the most used blockchain network, has not shared in the positive reception Bitcoin has gotten over the past week. While BTC, ADA, and Solana all recorded inflows worth millions of dollars, Ethereum has recorded over $14 million worth of outflows. Regardless, this has seemingly translated into positives for Ethereum-based derivatives with the website CryptoCompare, showing increased interest for them.
The crypto market seems to have undergone a significant turnaround at the beginning of October. Historically, this is the period when cryptocurrencies have done well and the market is currently reflecting that. Ethereum now sits above $3,400 having dropped to $2,700 by the end of September.
Most notably, the fourth quarter of 2020 brought cryptos to meteoric highs with BTC consistently reaching new highs culminating in an all-time high above $60,000. With this in mind, the next few weeks will be crucial for investors as they wait to see if the end of this year can mirror its predecessor.
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