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Altcoins have rallied over the past 24 hours, even as Bitcoin (BTC) struggled to hold onto the $100,000 price level. BTC briefly reached $100,000 but then fell below this key resistance zone. Meanwhile, many altcoins saw double-digit gains. Some of the top performers were XRP, Litecoin (LTC), Uniswap (UNI), Algorand (ALGO), and Virtuals Protocol (VIRTUAL).
According to CoinMarketCap data, XRP gained 8.74% in the past 24 hours. LTC jumped 16.18%, UNI rose 6.09%, and ALGO climbed 11.35%. VIRTUAL led the altcoin sector with a massive 28.67% gain. Ethereum, on the other hand, saw a more modest increase of 3.4%.
Related: Top Altcoin Picks for Q1: Accumulate Now or Risk Getting Left Behind
Why Are Altcoins Rallying?
One reason for the altcoin rally could be the recent drop in the 10-year treasury yield. The yield fell 15 basis points (bps), which suggests that investors expect slower economic growth or lower inflation. This could lead them to seek higher returns in riskier assets like altcoins. Bonds and other traditional “safe” assets become less appealing in this environment.
The United States Department of the Treasury reported that the 10Y Treasury Yield dropped from 2.50% to 2.35% at 10:00 AM ET. This sparked speculation that central banks might keep or adopt looser monetary policies. Expectations of increased liquidity often lead to higher altcoin prices.
Related: XRP, ADA and Two Other Altcoins To Stack Immediately
Altcoin Market Cap Analysis
The market cap of altcoins (excluding Bitcoin and Ether) increased 6.45% in the past 24 hours to $1.03 trillion. It briefly reached a daily high of $1.06 trillion before falling slightly. Trading volume also increased, as you can see in the daily chart from TradingView below.
Related: XRP, ADA and Two Other Altcoins To Stack Immediately
The Relative Strength Index (RSI) for the altcoin market cap is at 63.82. This indicates that buyers are back in control after the recent sell-off. The upward slope of the RSI line suggests that the bullish trend could continue in the short term. The MACD indicator is also bullish for altcoins. But, the intensity of the MACD histogram is decreasing, which could be a warning sign.
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