On Tuesday, the bulls showed that they are in complete control of the crypto market as bitcoin (BTC) stalled to $ 19,418.97 and several top-10 altcoins rose to double-digit new highs.
Notable performers of the day were Steller Lumens (XLM) and XRP with gains of 53% and 38% respectively.
With all the excitement and anticipation around the possibility of BTC rising to $ 20,000, crypto traders may have missed an equally impressive performance in traditional markets.
The same day the Dow gained a new all-time high to 30,046, up by over 400 points. The S&P 500 and Nasdaq suit by adding 1.6% and 1.3%.
According to market analysts, the development of three effective COVID-19 vaccines, recording low interest rates as part of Federal Reserve policy, the prospect of a second round of economic stimulus, and a growing pace of transition of power among the Trump administration. President-elect Biden is providing markets with the need to build up a lot of confidence.
The S&P 500 and Nasdaq futures are rising even higher at the time of writing, suggesting that today’s rally may continue at the opening bell on Wednesday.
Year to date, the Dow is up 6.84% and the S&P 500 up 10.73%. While these are good returns for any investor’s portfolio, bitcoin has so far outperformed the two, accounting for 166.67% according to skew data.
Surprisingly, Ether has continued to drive down the price of bitcoin and during the past week, top-ranked altcoin entered a parabolic rally, taking the price to $ 623 by 2020.
Typically, bitcoin and ether (ETH) prices receive the bulk of media coverage about their price movement but this week has shown that altcoins should not be ignored.
While the top two digital assets in the market cap have rallied and surprised year-over-year, data from TheTIE, a social analytics data provider, suggests that small-cap altcoins are also creating some serious waves.
Tweet volumes for select altcoins exploded in the last 24 hours and many altcoins realized gains in their BTC, USD and USDT pairs.
After such a strong rally from bitcoin, digital assets may enter a brief period of consolidation or even the lowest support. Historically, under these conditions, funds flow into altcoins and cause them to rally higher.
If bitcoin enters a range limit in the coming days, investors can repeat this practice, thus increasing the current rally seen between altcoins.