Altcoin XRP was able to break through 2021’s all-time high of $2, posting an impressive 400% rise since November to reach $2.90. Other altcoins also showed significant growth. ADA rose by 300%, HBAR by 800%, and XLM by 600%, analysts noted.
“The key driver of growth was the proposal to eliminate the capital gains tax on cryptocurrencies, drawn up by American companies. The market expects the formation of a more favorable regulatory environment for the crypto industry,” explained QCP Capital.
Despite the fall of Bitcoin to $93,500 and the reduction of positions by Korean traders, the subsequent growth of both major cryptocurrencies and altcoins demonstrated high demand for digital coins alternative to Bitcoin, experts emphasized. According to them, the situation demonstrates the increasing influence of political decisions on cryptocurrencies. Changes in the United States should help create new opportunities for the development of the digital asset industry, QCP Capital experts concluded.
Earlier, the CEO of the CryptoQuant platform, Ki Young Ju, said that the “standard signal” about the beginning of the altcoin season in the form of a flow of capital from Bitcoin to other digital currencies is no longer relevant.
Source: Bits
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