As Bitcoin dominance continues to slide, analysts are predicting a potential rally for altcoins like XRP, Ethereum (ETH), and other smaller cryptocurrencies. With the upcoming Trump inauguration on January 20, 2025, and the anticipated departure of SEC Chair Gary Gensler, altcoins may see significant upward momentum in the coming months.
Bitcoin Dominance Falls, Signaling Altcoin Season
Bitcoin dominance, a metric that compares Bitcoin’s market capitalization to the overall cryptocurrency market, has dropped to 56.1%, marking a key turning point. This fall below its two-year support line is widely seen as a strong signal that altseason is underway, a period when alternative cryptocurrencies (altcoins) often see more significant price action compared to Bitcoin.
Popular crypto analyst Mikybull Crypto highlighted this shift in dominance on November 30, noting that the current trend indicates the market is officially in altcoin season. As Bitcoin’s market share declines, investors typically reallocate funds from BTC into altcoins, driving demand for smaller cryptocurrencies like XRP and Ethereum (ETH).
This trend could potentially intensify in the coming months as investors move into altcoins in anticipation of positive market catalysts, especially with Trump’s inauguration and Gensler’s exit on the horizon.
Ether and Altcoins Poised for Growth
The drop in Bitcoin dominance comes amid growing investor interest in altcoins, especially Ether (ETH). Since Donald Trump won the 2024 U.S. Presidential Election on November 5, demand for leveraged Ether ETFs has surged by over 160%. This heightened demand signals optimism for ETH, with analysts predicting that Ether could potentially rally above $4,000 in the months leading up to January 2025.
The shift in investor interest towards altcoins has also spurred expectations of a broader rally in smaller crypto assets, including XRP. XRP, currently the sixth-largest cryptocurrency, is primed to benefit from the decreasing dominance of Bitcoin, which could push its price higher into 2025.
XRP Price Forecast: Surge to $2.57 in December 2024
According to Ryan Lee, Chief Analyst at Bitget Research, XRP could see a significant rally over the next few weeks, with a potential price target of $2.57 by December 2024. Lee points to the current market structure and Bitcoin’s upcoming halving event as key factors that could fuel XRP’s price movement. Historically, XRP has shown notable growth approximately 228 days after a Bitcoin halving, a pattern that could repeat in 2024.
Furthermore, the ongoing discussions about the approval of an XRP ETF are expected to serve as a major catalyst for price growth. 21Shares, a prominent asset manager, recently filed for an XRP ETF with the U.S. Securities and Exchange Commission (SEC), becoming the third firm to do so. This move could significantly increase institutional interest in XRP, pushing its price further upward.
SEC Leadership Change: A Potential Game-Changer for Altcoins
One of the most significant events in the crypto market in early 2025 will be the departure of SEC Chair Gary Gensler on January 20. Analysts expect this change in leadership to have a positive impact on XRP and other altcoins, as it could signal a more crypto-friendly regulatory environment. Gensler’s departure may pave the way for a more open approach to crypto-based ETFs and other regulatory measures that could foster greater investment in digital assets.
Additionally, Trump’s inauguration on the same day is expected to further fuel market optimism, with many analysts predicting an increased risk appetite among investors. The combination of regulatory shifts and political change is likely to create a favorable environment for altcoins, particularly XRP, which could benefit from the evolving regulatory landscape.
Ethereum Price Outlook: Potential for $4,000 Rally
As Bitcoin’s dominance wanes, Ethereum is expected to benefit from the rising altcoin interest. Many analysts are bullish on ETH, predicting that the cryptocurrency could break past the $4,000 mark in the coming months. This potential rally is likely to coincide with the broader market trend of increasing demand for altcoins, driven by favorable regulatory developments and heightened investor sentiment ahead of Trump’s inauguration.
Conclusion: Altseason and XRP’s Growth Potential
With Bitcoin dominance on the decline, the stage is set for a potential altcoin season, with XRP and Ethereum among the key beneficiaries. As investor interest shifts away from Bitcoin, altcoins like XRP could experience significant rallies in the months leading up to January 2025.
The anticipated SEC leadership change and Trump’s inauguration are poised to serve as powerful catalysts, particularly for XRP, which could see a surge to $2.57 by the end of 2024. With increasing institutional interest in digital assets and the approval of potential XRP ETFs, the cryptocurrency market is entering a phase of growth, offering new opportunities for investors and altcoin holders alike.
