Bitcoin started strong today with a rise above 61,000 dollars. In the meantime, the Bitcoin price has fallen a little bit, but a handful of altcoins were also able to profit from the revival of the largest coin on the market. For example, BNB managed to gain 5.48%, XRP shot up by 4.28% and TRON is even 9.48% in the green.
Why are these altcoins rising?
It’s often hard to pinpoint specific reasons for increases. In this case, for example, we saw XRP’s Open Interest (OI) on the derivatives market increase by 11% to $712 million. This usually indicates more speculative capital flowing into an asset, which is generally good for the price.
BNB even recorded a larger increase in OI, at 19%. For BNB, the OI reached $601 million, which is slightly lower than XRP’s $712 million. For TRON, it was a real party, as its OI rose from levels of $50 to $150 million towards $300 million.
This may have something to do with the fact that TRON has become home to a huge amount of Tether stablecoins. Today it was announced that Tether has once again baked $1 billion worth of stablecoins on the TRON blockchain.
Such developments indicate that major players have confidence in TRON’s future and see value in the blockchain, which is of course also good for the token itself.
Structural bear market for altcoins
Despite today’s gains, 10x Research’s Markus Thielen says altcoins are in a structural bear market, a trend he says dates back to December 2022, at least relative to Bitcoin.
Against the US dollar, many altcoins have of course already risen considerably and come to life again, although most (unlike Bitcoin) have yet to make a new all-time high.
The long-awaited altseason has not yet happened. Many analysts have switched from Bitcoin to altcoins in recent months, hoping to make even more money with them. They have been disappointed so far.
A good example of this is Michaël van de Poppe, the Dutch analyst sold all his Bitcoin for altcoins in May 2024. Although he indicated that he had not lost his confidence in Bitcoin, he had more confidence in altcoins.
That was a painful mistake for the analyst.
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Source: https://newsbit.nl/bnb-xrp-en-tron-schieten-omhoog/
