Why December is the best time to buy altcoins
- Historically, altcoin prices have plummeted in December wiping out millions in market capitalization every year.
- Analysts believe that the trend could repeat, triggering a drop in altcoin prices in the next two weeks.
- A correction in Bitcoin dominance could negatively impact the price of altcoins.
Since 2017, the Bitcoin bull run has been followed by a bloodbath in altcoins as capital rotated back into the major crypto. Millions in market capitalization were wiped out of the crypto market as altcoin prices plummeted. Analysts believe that December is the best period to buy altcoins.
Altcoins are a better buy than Bitcoin in December
In Bitcoin’s 2013 and 2017 bull runs, the price hit a new all-time high in the month of December. Bitcoin’s dominance hit a peak in December, driving altcoin prices and market share lower.
Analysts have observed that December is the best period of the year to buy altcoins. Even in 2020, when Bitcoin price also plunged and over $40 billion was wiped out of the crypto market altcoins followed suit, offering investors opportunities to buy at a rare discount.
Altcoins lost a significant percentage of their market share alongside the Bitcoin bloodbath. Chainlink, Cardano, and XRP posted double-digit losses within a single day, offering investors an opportunity to buy.
Analysts believe it is possible that this trend repeats itself, presenting a buy opportunity for altcoins this December.
Michaël van de Poppe, a crypto analyst, and YouTuber recently tweeted:
Historically, the best period to buy #altcoins is December.
— Michaël van de Poppe (@CryptoMichNL) December 16, 2021
Most likely, this will repeat again.
Dogecoin price posted over 25% gains within a few hours of Tesla’s announcement accepting the meme coin as payment. @AltcoinSherpa, a pseudonymous cryptocurrency analyst, observed that the Shiba-Inu-themed cryptocurrencies' prices retraced.
$DOGE: As I thought, this pump was short lived and quickly retraced. Entire altcoin market looks bad for now, I'd be patient with entries. #DOGE pic.twitter.com/yRQeRJi38d
— Altcoin Sherpa (@AltcoinSherpa) December 15, 2021
Bitcoin dominance is currently 38.6%, a correction could have a negative impact on altcoin prices as seen in previous BTC bull runs.
FXStreet analysts have evaluated altcoin price trends and predicted that Cardano, XRP, and Shiba Inu are in the accumulation zone and primed to consolidate further. This would present traders with a buy opportunity for Cardano, XRP, and SHIB.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
