Editor's PiCK

[Analysis] "Improvement in Virtual Asset Regulations... Altcoin Bull Market Coming in Q2"

Source
Son Min

Summary

  • It was reported that the improvement in virtual asset regulations is likely to trigger an altcoin rally from the second quarter of this year.
  • Sygnum predicted an increase in market capitalization through the influx of new users and increased usability of altcoins.
  • A decrease in Bitcoin dominance and improved performance of altcoin projects are expected.

An analysis has emerged suggesting that an altcoin rally could start from the second quarter of this year, driven by improvements in virtual asset (cryptocurrency) regulations.

According to Cointelegraph on the 18th (local time), Sygnum, a virtual asset bank, stated in a report, "Regulations related to the use of virtual assets have been significantly improved," and "There is a high possibility that the altcoin market rally will resume in the second quarter of this year." The explanation is that the improvement in regulations could lead to a significant influx of new users into the virtual asset market, greatly increasing the usability and market capitalization of altcoins.

They also predicted a decline in Bitcoin dominance (the share of Bitcoin in the virtual asset market). Sygnum said, "Currently, Bitcoin dominance is at its highest level in four years," but added, "The Trump administration's virtual asset reserves and stablecoin policies will lead to widespread adoption of virtual assets." Furthermore, they elaborated, "Altcoin projects that have captured user interest will particularly perform well," and "Bitcoin dominance will gradually decrease."

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Son Min

sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
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