As Bitcoin rebounds above $100,000 after a slight correction this week, the cryptocurrency market shows new trends. A 2024 Pew Research Center poll reveals that 17% of U.S. adults have engaged with cryptocurrency, unchanged since 2021. Bitcoin’s rally has spurred FOMO, with the Fear and Greed Index showing “extreme greed.” However, sidelined traders may consider cheap altcoins.
Trump’s crypto plans, including statements about a potential strategic Bitcoin reserve and nominations of crypto-friendly candidates, have boosted sentiment and led to a rally in Bitcoin and altcoins. Despite concerns over Google’s new computing chip’s impact on Bitcoin security, which experts deem minimal, the market continues to move.
Bitcoin options data indicates a bullish outlook, with a 25-delta risk reversal of 3.75985 and a put-call ratio below 0.55, suggesting more bets on a price rise and expectations of market stability as implied volatility has declined.
The altcoin season index has climbed to 71, nearing the 75 mark that signals a full-fledged altcoin season. This could lead to a significant price push for many altcoins.
Among the cheap altcoins to consider are Ethereum, with its potential for outperformance due to institutional and retail inflows and bullish options metrics, paving the way for related tokens. Gaming and AI tokens like Beam, which is integrating AI into its gaming network, are also in focus. Aerodrome Finance, a token in the Base ecosystem, is trading in a buy zone with a target set by Fibonacci retracement. Chainlink, a major oracle network, and meme coins like Pups World Peace and Pepe also present opportunities.
However, the 2024 crypto market cycle differs from previous bull runs, with institutional capital mainly flowing into Bitcoin. While options suggest Bitcoin may stay near $100,000 and altcoin season could boost prices, a market correction is always possible, especially if Bitcoin experiences a flash crash.
Related topics:
Ohio’s Ambitious Leap into the Crypto Realm: The Proposed Bitcoin Reserve Bill
