#AICrashOrComeback
As of February 7, 2025, the cryptocurrency market is experiencing notable developments concerning altcoins.
Regulatory Developments and ETF Approvals
Following President Donald Trump's re-election in November 2024, several asset managers have submitted applications to the U.S. Securities and Exchange Commission (SEC) for exchange-traded funds (ETFs) focused on altcoins such as Solana (SOL), XRP, Dogecoin (DOGE), and even a Trump meme coin. Currently, the SEC has approved ETFs that invest directly in Bitcoin and Ether. Crypto traders are optimistic that under the current administration, with SEC Commissioner Hester Peirce leading a crypto task force, the approval of altcoin ETFs might occur, potentially driving their prices up. Prediction markets indicate an 83% chance for Solana ETFs and an 80% chance for XRP ETFs to be approved in 2025. However, investment inflows into these potential ETFs remain uncertain compared to Bitcoin ETFs, which have seen significant inflows since their launch.
Market Dynamics and Bitcoin Dominance
Bitcoin's dominance in the market has been rising, with the Bitcoin Dominance Index nearing multi-year highs. As of February 5, 2025, Bitcoin accounts for 61.5% of the total crypto market capitalization, its highest level since early 2021. This indicates that for every dollar invested in crypto, over 61 cents go into Bitcoin, leaving around 39 cents for other cryptocurrencies. The CMC Altcoin Season Index, which tracks the performance of the top 100 altcoins relative to Bitcoin over the past 90 days, sits at 36, a sharp drop from 87 in December 2024, when altcoins surged following Trump's election victory. A reading above 50 suggests a mild altcoin rally,
Market Performance
As of February 7, 2025, the top cryptocurrencies by market capitalization are:
Bitcoin (BTC): Trading at approximately $97,464.29, with a 0.53% increase.
Ethereum (ETH): Trading at around $2,721.28, up 2.11%.
XRP: Priced at $2.3581, a 1.35% rise.
Solana (SOL): At $192.49, increasing by 2.97%.
Dogecoin (DOGE): Valued at $0.2531, up 1.53%.
