Why Some of the Market's Favorite Altcoins Were Soaring Today

With Bitcoin seemingly stuck in a holding pattern, many optimistic crypto investors have turned their attention to altcoins, seeking better returns by purchasing various coins and tokens.

Not every altcoin participated in the upward trend, but most were doing well as afternoon trading progressed. For instance, the well-known meme token Shiba Inu (SHIB) saw a substantial increase of nearly 8% by 4 p.m. ET, while Stacks (STX) outperformed it with a rise exceeding 10%. Even better, both Polkadot (DOT) and Cronos (CRO) were trading about 12% higher.

Bitcoin Hesitation and a Favorable SEC Chair Nominee

Since the U.S. presidential election, many within the crypto community have anticipated a more supportive administration for their interests. This expectation grew even stronger when the president-elect, Donald Trump, nominated Paul Atkins for the position of chair at the Securities and Exchange Commission (SEC). Atkins is not a newcomer to the SEC; he was a commissioner from 2002 to 2008 and is known for advocating for cryptocurrencies. The firm he leads, Patomak Global Partners, has clients in the crypto industry.

While Trump's party holds a slight majority in the Senate (the body that confirms SEC nominees), Atkins comes with a wealth of experience in both regulatory and business spheres. His nomination is considered less controversial compared to other appointments in Trump's cabinet, which boosts investor confidence.

At the same time, many investors appear to be holding back on Bitcoin for the moment. The leading cryptocurrency's value has been flirting with breaking the critical $100,000 mark but has not yet succeeded. There seems to be a shared sentiment that Bitcoin's rally may be running out of steam, leading investors to explore selected altcoins that they believe may yield better returns.

A Possible Holiday Slowdown?

While the reaction to Atkins' nomination has been largely positive for specific cryptocurrencies, this may not serve as a long-term support for the broader asset class. It seems more plausible that most coins and tokens will take a breather until the holiday season, only to pick up momentum once the January Effect kicks in. However, should Bitcoin manage to break past the $100,000 barrier in the coming days, it is likely that altcoins will also receive a boost in response.

The author holds positions in Bitcoin. The information shared does not represent any specific investment advice.

altcoins, cryptocurrency, market