The popular cryptocurrency exchange platform predicts massive growth in the altcoin market in the coming weeks after Donald Trump assumes the US presidency on January 20. AND Coinbase analysis urged cryptocurrency traders to start positioning themselves in the altcoin space as a potential massive altcoin rally looms on the horizon.

Coinbase reports an boost in the number of Altcoins

Cryptocurrency exchange Coinbase has hinted that massive market growth is coming altcoins may be on the way and could happen in the coming weeks after Trump returns to the White House.

The cryptocurrency exchange published its latest weekly market commentary, presenting its observations on Trump’s upcoming inauguration and its impact on the stock market. cryptocurrency landscapesaying that while the modern US president is pro-crypto, it may take some time before “all planned cryptocurrency-related policies on the agenda” are fully implemented.

However, Coinbase analysts noted that they expect altcoin prices to surge following Trump’s inauguration on January 20, as they believe the digital asset space is gearing up for a massive altcoin rally.

The cryptocurrency exchange’s report said cryptocurrency traders could strategically position themselves to fuel the next altcoin growth spurt under the Trump administration.

According to Coinbase, the latest surge in altcoins is due to a slight decline in Bitcoin’s dominance.

“The decline in BTC dominance from 58.5% to a support level of 57.3% during the inflation printer relief rally on January 15 suggests to us that investors can position themselves for massive growth in the altcoin market based on positive catalysts for risky assets and cryptocurrencies. ” Coinbase explained in the report.

BTC’s fading dominance

A cryptocurrency analyst has observed that the dominance of the world’s most popular cryptocurrency, Bitcoin, may decline slightly, which has enabled the latest altcoin pump.

“Importantly for the long tail, $BTC’s dominance has been slowly fading since late Nov 24 – fireworks if it continues,” said VC firm Placeholder partner and former ARK Invest crypto leader Chris Burniske.

What is crucial for the long tail, $BTC Since slow November 24, the dominance has been slowly waning – fireworks if this continues. pic.twitter.com/PyBWTwT8os

— Chris Burniske (@cburniske) January 17, 2025

In its report, Coinbase presented a possible price scenario for Bitcoin under Deribit options contracts.

“Maximum painting point for Deribit BTC Options expiring on January 31 and February 28, 2025, is PLN 94,000, respectively. dollars and 98 thousand dollars. However, with the expiration date of March 28, this amount drops to PLN 80,000. dollars. While this is not a pure prediction of future price action, the maximum reference point suggests possible biases in market positioning by market makers and options sellers who may be hedging their commitments,” cryptocurrency exchange analysts said in a weekly commentary.

Stablecoin Tip Flows In

Crypto analysts observed that stablecoins saw mighty inflows, which Coinbase analysts David Duong and David Han suggested as an indicator that the altcoin could see a bullish market.

Analysts added that much of the mighty stablecoin capital inflows went to altcoins, while Bitcoin and Ethereum saw outflows.

“Stablecoin supply – perhaps our clearest indicator of capital flows into long-tail assets – increased by $1.3 billion last week, continuing the trends we have seen over the past two months,” Coinbase said in a report.

Coinbase also noted that BTC net outflow was $457 million, while ETH net outflow was $206 million.

Featured image from Pexels, chart from TradingView