As Bitcoin Reaches the $100,000 Mark, Will Altcoins Follow? Analysts Evaluated!

Bitcoin’in (BTC) This week’s steady climb toward the $100,000 mark triggered a significant pivot into altcoins with a surprise announcement: the resignation of SEC Chairman Gary Gensler.

The exit of Gensler, known for his tough stance on crypto, revived the market and altcoins came to the fore on Thursday.

Altcoins, which are smaller and often riskier cryptocurrencies than Bitcoin, have soared this year along with the record-breaking rally of the largest cryptocurrency. While Bitcoin remains in overbought territory, analysts suggest that altcoins could extend their recent gains.

“All cryptocurrencies have been on the rise in recent weeks,” said Rob Ginsberg of Wolfe Research. “In relative terms, it seems certain that cryptocurrencies will continue to outperform stocks as we head into 2025.”

Dogecoin, which has become the sixth largest cryptocurrency by market value with an increase of 270% in the last three months, is also among the prominent cryptocurrencies. Analysts attribute this increase to increased individual interest, especially after the last US presidential election.

“Memecoins like Dogecoin remain speculative but are undeniably part of crypto culture,” said Zach Pandl, director of research at Grayscale Investments. “While they carry significant risks, they reflect the permissionless and community-driven nature of the crypto industry.”

Bitwise Asset Management’s Ryan Rasmussen cautioned against overemphasizing memecoin activity, noting that only a handful of such coins will survive in the long term. Despite the risks, memecoins have proven to be a gateway for newcomers with their affordability and pop culture appeal.

Despite its historic rise, Bitcoin may face headwinds. Galaxy Digital CEO Mike Novogratz warned of a potential pullback, citing “excessive leverage in the system.” Ginsberg of Wolfe Research echoed these concerns, stating that Bitcoin had entered “overbought territory.” However, he acknowledged that past rallies of this magnitude have generally led to either a period of consolidation or a continuation of momentum as new investors pile in.

Altcoins offer a range of uses beyond Bitcoin’s digital gold narrative. While Ethereum and Solana lead the way in smart contracts, tokens like Uniswap and Cardano are at the center of decentralized finance (DeFi). NFT and gaming industries also benefit from altcoins adapted to these ecosystems.

The Trump administration’s pro-crypto stance could further strengthen altcoins, which remain under greater regulatory scrutiny compared to Bitcoin. “These sectors could benefit more from Bitcoin from a friendlier regulatory environment,” Ginsberg said.

The Memecoin boom could also mean success for retail trading platforms like Robinhood. Trading volume for the top five memecoins reached $70 billion in a single day after the election, with $45 billion of that coming from the largest token, according to Needham analyst John Todaro.

*This is not investment advice.