Altcoins take center stage as Bitcoin treads water near $20K support
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(Kitco News) – Altcoins saw increased attention from traders on Thursday thanks to several notable announcements that helped lure crypto fans into the market despite flat price action for both Bitcoin (BTC) and Ether (ETH).
Social media platforms continue to spark token rallies amid crypto winter, with Polygon (MATIC) and Arweave (AR) the latest recipients of a high-profile integration as Meta revealed that both will play a major role in allowing Instagram users to create and store non-fungible tokens (NFT).
Apart from several breakout coins, the broader crypto market, along with the traditional markets, came under pressure as traders remained cautious about diving back into the markets following claims by Federal Reserve Chairman Jerome Powell that hopes of a policy pivot were “too early” after yesterday’s fourth consecutive interest rate increase of 75 basis points.
Data from TradingView shows that Bitcoin traded in a limited price range on Thursday, with bulls defending support at $20,000 while bears have strengthened the resistance at $20,400.
BTC/USD 4-hour chart. Source: TradingView
According to Kitco senior technical analyst Jim Wyckoff, the sideways price action has yet to confirm a bearish outlook; “However, another price rally on the daily bar chart is now in danger of being negated.”
As it stands now, “bulls still have the small overall technical advantage in the near term, but will need to show renewed vigor soon to keep it,” Wyckoff warned.
A survey of crypto Twitter suggests a similar outlook, with many expecting a final drop to new lows in BTC before the next bull run begins.
My main bias has not changed as I expect more consolidation and one more drop to produce a spring-like move to start the bull run pic.twitter.com/n0FYKxvtge
— Crypto Tony (@CryptoTony__) 3 November 2022
Looking forward to 2025
Insights into what the future may hold for Bitcoin were offered by Finder.com, which predicts that the sideways action will continue for the rest of the year. That said, investors can look ahead to 2025 as the top crypto “could see new highs not reached before.”
According to Finder’s panel of 55 fintech and cryptocurrency specialists, BTC will be worth $21,344 by the end of 2022 “before skyrocketing to $79,193 by 2025.”
While this number is well below what many of the overly optimistic predictions have been in recent years – with many calling for a $1 million BTC in the not-too-distant future – it is more than three times the current trading price, representing a respectable gain in someone’s portfolio.
CoinSmart Financial CEO Justin Hartzman is a little less optimistic, seeing a price of $17,000 by the end of the year and a peak of $75,000 by 2025.
“Bitcoin is suffering due to external macro conditions. My price prediction for 2025 will depend on the aftermath of the halving. If macro conditions improve and the regulatory environment improves, BTC price should be able to rise,” Hartzman said.
A majority of respondents (53%) believe that Bitcoin’s price will continue to be correlated with high-growth technology stocks. Despite the broader market decline and Bitcoin dominance falling below 40%, the majority of panelists (77%) still consider Bitcoin a store of value.
Overall, 46% of panelists said it’s time to buy BTC, 44% remain neutral and 10% indicated it’s time to sell.
Altcoins are trending higher
It was a green day for the vast majority of tokens in the top 200 as prices bounced back from yesterday’s slump following hawkish comments from the Fed.
Daily performance in the cryptocurrency market. Source: Coin360
The day’s biggest gains include Arweave (AR), which surged 47.83% following the announcement of its partnership with Meta, a 44.4% price increase for Mask (MASK), and a 30.77% gain for OKB (OKB).
Traditional markets fell under pressure after the Fed reiterated its intentions to continue raising interest rates to fight inflation, resulting in the S&P, Dow and Nasdaq all closing in the red, down 1.06%, 0.46% and 1 .73%.
The total cryptocurrency market cap is now at $1.007 trillion, and Bitcoin’s dominance rate is 38.6%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
