Key Points
- Bitcoin has surged past $100,000, triggering a fear of missing out among investors.
- Investors looking for alternatives could consider cheap altcoins in this market cycle.
Bitcoin has rebounded past the $100,000 mark after a brief dip earlier this week. Data from a 2024 Pew Research Center poll reveals that 17% of U.S. adults have invested in, traded, or used a cryptocurrency, a figure that has remained unchanged since 2021.
Bitcoin’s Rally and Cheap Altcoins
The surge past $100,000 has sparked a fear of missing out among many investors. The Fear and Greed Index, which measures market sentiment, indicates “extreme greed.” However, investors who have been on the sidelines could consider affordable altcoins as an alternative to Bitcoin in this market cycle.
Incoming U.S. President Donald Trump has expressed his plans to do something significant with crypto to stay ahead of other countries, especially China. His optimistic outlook has fueled positive sentiment among crypto traders.
Bitcoin Options Data and Altcoin Season
Bitcoin options data suggests a bullish sentiment for the cryptocurrency with a $2 trillion market cap. More market participants are betting on a rise in Bitcoin price, while Bitcoin remains steady above $100,000 across spot exchange platforms.
Altcoin season, a period where 75% of the top 50 altcoins outperform Bitcoin for 90 days, is also returning. The altcoin season index at the blockchain center has climbed to 71 on a scale of 0 to 100, suggesting that the market is moving closer to the second leg of altcoin season.
Altcoins to Consider
Three key narratives support the list of cheap altcoins that could help sidelined buyers gain an edge over Bitcoin holders this cycle. These include Ethereum (ETH) outperforming Bitcoin with rising inflows from institutions, retail traders, and bullish options metrics, resurgence in demand for gaming tokens and Artificial intelligence tokens, and Bitcoin-based meme coins competing with Ethereum, Solana, and XRP-based memes.
The crypto market cycle in 2024 is different from previous bull runs as most institutional capital inflow is geared towards Bitcoin. The narrative of “capital rotation” does not hold as much ground in the ongoing bull run. Options metrics signal Bitcoin price could hover close to the psychologically important $100,000 level. The return of altcoin season could send prices higher, however there is always a likelihood of a market correction if Bitcoin observes a flash crash.