Altcoins
JPMorgan Predicts Altcoins to Surge in August as Bitcoin Recovers – Time to Buy XRP and ADA?
- JPMorgan analysts predict a potential bottom for the current market correction, expecting Bitcoin and altcoins to rebound strongly in August.
- The upcoming launch of the Ethereum spot ETF could prove to be a major catalyst in triggering the altcoin market rally going forward.
Along with the heavy selling pressure on Bitcoin, altcoins have also been hit the hardest by this broader market correction. However, banking giant JPMorgan believes that the bottom may be reached as we could be heading towards a major altcoin season ahead.
In their latest report, JPMorgan analysts noted that they expect Bitcoin and altcoins to rally strongly in August. The report also noted that there is a greater likelihood that long liquidations will taper off by the end of this month.
However, amid this persistent bearish sentiment, JPMorgan has had to revise its net inflow expectations for the year 2024. According to JPMorgan’s updated forecast, the cryptocurrency market could see inflows of $8 billion, down from the $12 billion previously forecast.
However, if Bitcoin price sees a major rally in August, altcoins will also see a strong rally. Contrary to popular belief, BTC growth does not necessarily lead to altcoin declines, which calls into question the notion of a Bitcoin season.
After falling as low as $53,500 earlier this week, Bitcoin is on the road to recovery. At press time, Bitcoin price is trading up 1.51% at $58,094 with a market cap of $1.145 trillion. Bitcoin has performed well despite the German government selling its BTC and emptying its wallet on Friday. reported CNF.
When will the Altcoin Market Rally Start?
However, this will not be the case, as altcoins are simply following Bitcoin’s lead. The last time altcoins saw a surge, signaling the start of an altcoin season in late 2023, they were also following BTC’s lead.
For an altcoin season to be confirmed, at least 75% of the top 50 altcoins, excluding stablecoins, must outperform Bitcoin. Currently, altcoins are far from witnessing an altcoin season, as around 70% of them are underperforming BTC over the last 90 days.
The only altcoins currently outperforming Bitcoin are Toncoin (TON), PEPE, BONK, Kaspa (KAS), Monero (XMR), and Tron (TRX). All other tokens are suffering losses.
However, there are a few market developments coming up that could potentially trigger a rally in the altcoin market. Next week, the U.S. Securities and Exchange Commission (SEC) will most likely approve the Ethereum spot ETF, according to CNF updateThis could further propel ETH price beyond $3,200, setting the stage for a fresh bull run towards $4,000 and beyond.
On the other hand, Ripple’s native cryptocurrency, XRP, saw a strong breakout as it surged 11% in the last 24 hours while surpassing $0.50, reported According to data from CoinGlass, XRP futures open interest has increased by over 24%, indicating strong bullish momentum in the market. Additionally, XRP trading volume has surged by over 73% in the past 24 hours, reaching $2.02 billion.
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