A decrease in the growth rate of inflation in the United States and the trade agreement between the States and Saudi Arabia by $ 600 billion led to a sharp increase in risky assets on the night of May 14, Kapital analysts say. They added that in this rally cryptocurrencies were ahead of the raising stocks, reports RBC Crypto.
At the same time, the leading alternative cryptocurrencies overtook Bitcoin (BTC). The total capitalization of the cryptorrhist in a day increased by 1.2%, to $ 3.37 trillion. According to the data at 15:20 Moscow time, Bitcoin in 24 hours went up by 0.2%, Ethereum (ETH) – by 4.5%, Solana (SOL) and Dogecoin (DOGE) – by 4.1%.
The first “signs of rotation” of the popularity of cryptocurrencies among investors in QCP noticed on May 13. Analysts indicated that Bitcoin’s domination dropped below 63%, while altcoins, especially ETH, began to increase the market share.
According to TradingView, the Bitcoin domination fell by 4.5% per week and is 62.3%. The share of the Ethereum market during this time increased by 28%, to 9.5%. The remaining cryptocurrencies account for a little more than 27% of the market. A decrease in bitcoin domination in favor of other digital coins usually indicates that interest in altcoin has increased.
The lag of the BTC from altcoins is associated with the “confrontation between its status of digital gold and its function of the risk hedging tool,” the QCP note says. According to analysts, this can hold the asset within the current range.
“ETH, on the contrary, seems to build a more understandable story,” experts say. They noted the resumption of options of options with a longer validity period, and this may be an early sign that Ethereum “positions itself as the next major investment opportunity in the market.”
QCP believes that cryptocurrencies have more opportunities for growth, especially as the date of inclusion of Coinbase in the S&P 500 index approaches on May 19. History shows that inclusion in the index usually acts as a short -term catalyst, analysts explain.
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Source: Cryptocurrency
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