thecryptobasic.com
Kevin Cage, advisor to crypto venture fund Iron Key Capital, expects to see altcoins like Hedera (HBAR) skyrocket by impressive margins once Bitcoin (BTC) clinches new cycle highs.
Cage recently made this assertion while speaking on Bitcoin’s price movements and its impact on the rest of the market. As the premier and dominant crypto, BTC dictates the direction of the broader market, with its recent surge above $40K raising the global crypto market cap 3.77% to $1.54 trillion.
Amid Bitcoin’s price uptick, some altcoins like XRP and HBAR have failed to record similar upswings, raising concerns among market participants. Cage’s disclosure aims to dispel these concerns, as he asserts that most of these altcoins are not yet primed for a takeoff.
Bitcoin and HBAR’s Price Correlation
Cage cited an example with HBAR’s performance in relation to Bitcoin. According to the analyst, HBAR confidently outperformed BTC in the previous cycle despite starting its rally later than expected. Overall, Hedera soared 60x from its lowest price in 2020 while BTC rallied by 20x.
Data from an accompanying chart corroborates this disclosure as well as the timing of the rallies. Notably, the most recent Bitcoin halving occurred in May 2020. Immediately after the halving, Bitcoin saw a price upswing, surging 114% to $19,676 in December 2020. However, this was not a new high, as this price represented the asset’s ATH in 2017.
Due to Bitcoin’s inability to record new highs immediately after the halving, assets like HBAR failed to record impressive gains despite BTC rallying 114%. Interestingly, HBAR only increased 18% from May 2020 to December 2020.
However, Bitcoin surpassed the previous $19K ATH shortly after, skyrocketing to the most recent ATH around $69K. Responding to the record of a new Bitcoin all-time high, several assets, including HBAR, registered massive price surges. Particularly, HBAR rose 1,200% three weeks after BTC broke the previous ATH.
The Much Needed Boost
Cage emphasized that the reason he made this disclosure was to make investors see how most altcoins record their explosive price surges only after Bitcoin has broken past the previous ATH. As a result, altcoins such as XRP and HBAR, currently witnessing dull performances, could start observing their bull run after BTC breaks $69K.
Notably, the upcoming Bitcoin halving and the anticipated spot BTC ETFs could bolster Bitcoin’s chances of breaking above the previous all-time high next year, providing the rest of the market with the much-needed boost. BTC currently trades for $41,574, up 5% over the past 24 hours.