Can a Rising Bitcoin Lift All Cryptos?

Can a Rising Bitcoin Lift All Cryptos?

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Andrew Zapotochny
12/28/20 1:20 PM 2021-01-12 15:54:19
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Can a Rising Bitcoin Lift All Cryptos? In the wake of BTC’s bull rush, here are 3 altcoins worth considering. We all know the drill at this point. BTC (Bitcoin) hits an ATH (all-time high) a

Can a Rising Bitcoin Lift All Cryptos?

In the wake of BTC’s bull rush, here are 3 altcoins worth considering.

We all know the drill at this point. BTC (Bitcoin) hits an ATH (all-time high) and the question that inevitably follows — is it for real this time? In other words, is the growth sustainable or just another crypto market ebb and flow?

While the BTC rally stalled as many expected it would, there are still plenty of reasons for optimism — and not just for crypto’s top coin, but the market as a whole. As the US dollar continues to weaken, leading to declining interest rates and inflation, the outlook for cryptocurrency (or digital currency, blockchain, DeFi, however you need to phrase it) strengthens.

In fact, as Bitcoin nudges closer to its $20,000 milestone (with many analysts predicting a six-figure price tag in the not-so-distant future), a legion of altcoins are riding the wave of momentum. It’s proven true in the past; when BTC hit a then ATH in 2014 or during the 2016 halving, competing coins stood to benefit.

And while Bitcoin’s price continues to teeter to heights many never expected, its market share is actually on the decline, while competing altcoins are also growing in price at a higher rate.

Of course, this is not to say “fade Bitcoin, buy the field,” but a savvy investor should always be on the lookout for the next big thing. Even if pullbacks occur before the next big market rally, that will create buying opportunities for some of crypto’s buzziest prospects.

Here are three altcoins to consider for your crypto portfolio. All of which can be bought and traded on eToro.

Ethereum (ETH)

So right off the bat, you’ll notice we aren’t digging too deep in the talent pool. Not to worry, while ETH is the second biggest cryptocurrency by price/market cap, it still has plenty of room to grow. The strength/appeal of Ethereum has always been its status as a crypto platform to build apps and smart contracts, a claim that Bitcoin cannot make as a more straightforward alternative to fiat currency.

As a result, Ethereum is treated more like a security (even though it technically isn’t one) and investors are bullish about its future thanks to high-profile partnerships with top financial institutions and big tech (e.g., J.P. Morgan Chase and Amazon). Perhaps the biggest reason to get excited about Ethereum is the recent launch of Ethereum 2.0 (Eth2 for short), its souped-up new blockchain meant to improve scalability and security. All of the above are reasons to anticipate a potential price jolt for ETH, which has already quintupled in value in 2020.

Ripple (XRP)

Holding strong with the third highest market share, Ripple’s XRP differs from the top two cryptos in one distinct, glaringly obvious way — it’s dirt cheap. Typically trading in the quarter- to half-dollar price range, XRP has had a polarizing journey since launching in 2012. In condensed talk, its perpetually low value is tied to a sky-high inflation rate (roughly 20% per year) that drives down the purchasing power of its supply.

Without getting too much into the weeds, XRP is clearly a long-term play, which is what makes most altcoins unique and beaming with upside when compared to Bitcoin. Ripple’s overarching mission is to disrupt the global payments industry, and as a result, many traders don’t consider the venture a true cryptocurrency/decentralized platform. Regardless, XRP continues to experience tremendous growth and should see a sizable boost thanks to an upcoming airdrop that may push XRP over the $1 dollar mark for the first time in two years.

Litecoin (LTC)

Is LTC just Diet Bitcoin? In 2011, the altcoin was launched as a faster, more efficient version of crypto’s king currency, and even peaked at a near $350 price tag just three years ago. It has dipped below $100 since its ATH, but LTC has been on a rally as of late and is still a borderline top five asset with respect to market cap and market share.

While the two coins are competing in a sense, BTC does tend to bring along LTC as a trading partner during its bull runs, which was evident back during Bitcoin’s 2014 ATH. Since LTC is considered a “legacy altcoin” (it’s one of six cryptos that makes up the Bloomberg Galaxy Crypto Index), it holds prominence with casual buyers and has great liquidity. And now that Litecoin has been announced as one of four inaugural cryptos being added to Paypal (along with Bitcoin, Bitcoin Cash, and Ethereum), there is momentum for a price boost back into the triple figures.

Disclaimer. Blockgeeks does not endorse any content or product on this sponsored page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Andrew Zapotochny
andrew-zapotochny
andrew@blockgeeks.com
CEO at BlockGeeks

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