Could other cryptocurrencies benefit from Bitcoin’s recent surge?

As of this writing, Bitcoin is down 7.17% from its previous daily closing price of $68359, primarily due to profit-taking and risk aversion. However, as Bitcoin and Ethereum take centre stage in the market, altcoin season is picking up steam.

The market is gaining further excitement and confidence right now, largely due to the Ethereum Dencun update and the Bitcoin Halving event. Earlier, on Tuesday, Bitcoin reached a new all-time high of $69,191.95, shattering the previous milestone set in 2021. For the first time in history, the market capitalization of Bitcoin, the leading cryptocurrency by market value, surged to a historic high of $1.35 trillion before experiencing a slight downturn.

Risk Appetite

However, Bitcoin experienced a dramatic decline on Tuesday, attributed to profit-taking operations by investors in crypto-asset markets. The currency’s rise may be due to its relationship with risk assets, particularly US stocks.

It was a historic moment, earlier on Tuesday, when Bitcoin surged past its previous record that surpasses the peak it achieved in November 2021, marking a significant milestone in the cryptocurrency’s journey.

Countdown for Bitcoin’s Block Halving

Several news outlets indicated that halving will likely occur after 43 days and so, around April 19. An upcoming event, known as “block halving,” could result in bitcoin breaking more records this year.

This year’s rally is partly due to the US Securities and Exchange Commission approving spot bitcoin ETFs in January, which allowed investors to enter the bitcoin game without the risk of directly buying the cryptocurrency. More than $6 billion have entered the market since spot bitcoin ETFs began trading in the US this year.

XRP price reached a high of $0.6685 on Tuesday, with large wallets, retail traders, and XRP whales profiting from the increase. Data-wise, shows XRP holders have made over $320 million in gains since March. Despite this profit-taking, the altcoin rallied to a new year-to-date high of $0.6685 early on Tuesday. 

Dencun Hard Fork Update

The Ethereum Cancun-Deneb “Dencun” hard fork upgrade is set to be deployed on the main net on March 13. This upgrade aims to improve scalability, efficiency, and security through various Ethereum Improvement Proposals, including EIP-4844 for proto-danksharding. XRPLedger’s native token’s rising utility and capital inflow from market participants are driving XRP gains.

The SEC v. Ripple legal battle has a deadline on March 22, and the altcoin’s price is in an uptrend, close to its December 2023 peak of $0.70.