In the last few weeks, the crypto market has been able to recover more strongly. Previously, we saw massive losses in the crypto market, most notably in Altcoins. But now these cryptocurrencies are seeing stronger gains and, surprisingly, can even rise faster than Bitcoin. What Are the Reasons for the Rise in Altcoins? Should you even consider to buy Altcoins today?
How are Cryptos moving at the moment?
For a few weeks, we have seen a slight trend reversal in the crypto market. We are actually in a bear market, which has led to us seeing massive losses in almost all cryptocurrencies since the end of 2021. But after losses of between 80 and 90 percent, there has been a trend reversal in recent weeks.
In the last few weeks, prices have seen double-digit price increases. These were driven by the bitcoin price jump. This was followed by increases in Altcoins. We’ve seen gains of 20 to almost 50 in the past few weeks. In June, most cryptocurrencies saw their bottom. Prices recovered slightly in July and rose more sharply again, especially in August.
Which Altcoins are rising the most right now?
Bitcoin fell below $20,000 in June. But in the last few weeks, the Bitcoin price has been able to climb back above $24,000 and has seen an increase of almost 25%. But with that, Bitcoin was even less on the uptrend than other cryptocurrencies.
Above all, we have to name Ethereum among the Altcoins, which have risen sharply in recent weeks. The Ether price even fell below the $1,000 mark in June. But recently Ethereum scratched the $2,000 mark again.
Other Altcoins also saw strong gains. These included, among other things:
- Polygon (MATIC)
- Shiba Inu (SHIB)
- Dogecoin (DOGE)
- Solana (SOL)
Those Altcoins had higher gains over a period of 1.5 months than Bitcoin.
Why are Altcoins UP in recent weeks?
As already described, the Altcoins have risen more strongly again in the last few weeks. This was due to various factors:
1. Better economic data from the US
Cryptocurrency prices have been increasingly dependent on stock market developments for the last 2-3 years. These markets have been rising again in recent weeks. The good economic data from the USA ensured this. There, consumer and labor market data point to a positive development in the coming months. These factors have kept the markets positive again in recent weeks.
2. Relief after rate hikes
Interest rate hikes by the central banks caused massive losses in the markets in the first half of 2022. Bitcoin and the entire crypto market reacted to rumors and ultimately to interest rate increases with heavy losses. However, the last interest rate hike by the American Federal Reserve by 0.75 percentage points caused a recovery in the markets. They estimated that central banks are now taking inflation control very seriously.
3. Ethereum Merge
The Ethereum merge should finally be complete in August 2022. This is one of the reasons why the Ether course in particular has risen the most in the last few days and weeks. But the ERC-20 tokens based on the Ethereum blockchain will also benefit from this upcoming massive event. Ethereum generally has the highest impact on Altcoins.
Is it worth investing in Altcoins at the moment?
The Altcoins are seeing strong gains, especially in a highly bullish market. But right now we are in a bear market. The past few weeks have seen a slight bull run, causing Altcoins to surge. A further increase in prices in the coming weeks is possible, but not guaranteed.
But an investment in Altcoins should be worthwhile, especially in the long term. Because if prices don’t rise in the next few weeks, they should do so by the next big bull market at the latest. At the moment the prices are still very low due to the bear market and you could reap great returns in the next few years.
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Source: https://cryptoticker.io/en/top-3-reasons-why-its-currently-better-to-buy-altcoins/