Altcoins make a comeback in wake of Bitcoin ETF decision
With most traders focusing on the bitcoin market right after the ETF decision was made public, people tend to forget altcoins are worth keeping an eye on as well. A lot of altcoins are appreciating in value ever since the bitcoin ETF rule change was rejected. Dash, for example, has been doing extremely well these past few days. Other currencies are seeing similar results right now, indicating the altcoin market is in firing on all cylinders.
ALTCOIN TRADING GAINS MOMENTUM AFTER ETF REJECTION
It has become evident the SEC decision means there will never be a bitcoin ETF. In fact, there will never be a cryptocurrency ETF, or at least not until something changes drastically in the regulatory department. It is doubtful the SEC will ever grant their approval for such an investment vehicle, though, but that is of little concern to the cryptocurrency community. In the end, cryptocurrencies continue to truck along regardless of what the traditional financial world feels is right.
One thing that has become apparent over the past few days is how altcoins see a lot of trading action as of late. Various alternative cryptocurrencies have seen an influx of bitcoin trading volume, pushing nearly all markets in the green. According to some altcoin traders, the time is now to invest in alternative cryptocurrencies, although it is doubtful any of these currencies can ever gain as much traction as bitcoin. Considering bitcoin is still a very niche market, that does not bode well for most altcoins.
Some alternative cryptocurrencies may have a better shot at gaining mainstream traction alongside bitcoin, though. Dash, for example, has seen a spectacular value increase over the past few weeks. Particularly once the bitcoin ETF news came out, Dash saw an influx of new trading volume. It is evident bitcoin holders are looking to diversify their cryptocurrency portfolio, which is always a smart strategy. There is no reason to put all of one’s eggs into the same basket.
With the Dash price currently sitting at US$72.75, it is evident demands for more anonymous cryptocurrencies is not dwindling anytime soon. A lot of the current Dahs supply is locked up in masternodes which provide anonymous transaction services to the network. It takes 1,000 Dash to run such a masternode, which needs to be locked into a wallet at all times. Users also receive a small reward for providing these services to the network, hence there is no reason for people to sell their existing Dash supply all of a sudden.
Dash continues to rally against bitcoin in quite spectacular fashion as well. With a 26.5% gain in the past 24 hours alone, it is evident the ETF rejection is doing wonders for the Dash price right now. It is a bit unclear how long this trend will be maintained, though. Volatility is a part of the cryptocurrency ecosystem, particularly in the altcoin market. Always be careful when investing your bitcoin in altcoins, as values can shift in a matter of minutes.
Other altcoins are reaping the rewards from the bitcoin ETF rejection as well. Monero and Ethereum have all seen nice appreciations a swell these past few days. Similarly to Dash, however, it is impossible to tell what is driving these price trends exactly, other than the bitcoin ETF rejection. Bitcoin trading is usually a bit stale during the weekend, which gives alternative currencies a chance to shine. The bigger question is whether or not this trend can spill over to next week or not.