Altcoins Attempt to Build Gains After a Big Jump in Bitcoin

altcoins

It is a well-known fact that Bitcoin is the most important token in the entire crypto ecosystem; however, it should also be noted that altcoins have now become just as popular.

Bitcoin Rally a Sentimental Boost

Despite the fact that many of those coins now command multibillion-dollar valuations, the prices of most of these tokens are intimately tied to that of Bitcoin. Hence, there is now a lot of anticipation among crypto investors and market watchers that the recent rally in Bitcoin might spark a rally in altcoins as well.

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The rally in Bitcoin had been completely expected, and it is not really a surprise that there is now a lot of expectations among analysts with regards to the direction of the altcoins market. Bitcoin gained by as much as 42% in recent days, and analysts are now trying to figure out whether some sort of pattern is being replicated in the altcoin market.

The surge in Bitcoin was triggered by the fact that the Chinese government indicated its desire to invest heavily in the blockchain space. While the surge in Bitcoin has been the big news, many of the altcoins based in China have also experienced significant rebounds. For instance, Ontology surged by as much as 128%.

>> Bitcoin in Bull Territory? Some Analysts aren’t Sure

Over the past four months, the altcoin space has had a pretty tough time, and, historically, a surge in Bitcoin has resulted in a positive trend in these tokens. One of the most important things certain analysts noticed is the fact that after having been in the dumps for as many as four months, the total altcoin market experienced a significant breakout recently.

That might point towards a situation in which the whole market might be preparing for a surge. That being said, it is important for traders and investors to track the progress of any altcoin closely before making an investment.

Featured image: DepositPhotos © maloha13

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