Cryptocurrencies are going crazy again! Dogecoin leads the surge of altcoins, and Bitcoin briefly surpasses $44,000.
The recent surge in the cryptocurrency market is mainly driven by Meme tokens and new types of NFTs, leading to a sharp rise in altcoins. Dogecoin has become the hottest token in the past two years, with many tokens experiencing gains of over 1000%, although their trading prices remain relatively low. In addition, the value of tokens on trading platforms such as Solana and Avalanche has also skyrocketed, with Bitcoin reaching its highest level in over a week. The CEO of cryptocurrency investment firm Satori Research stated that the altcoin season is back, similar to the first quarter of 2021. Bitcoin is expected to be influenced by the approval of spot ETFs and the recovery of FTX's debt claim prices. The debt claim prices of the bankrupt cryptocurrency exchange FTX Group have also increased to some extent.
Zhitong App has learned that despite the optimistic sentiment surrounding the approval of US ETFs to hold Bitcoin dominating the headlines in the cryptocurrency field for most of this year, the industry's recent biggest gains have actually come from Meme tokens and new types of NFTs.
So-called "altcoins," such as Dogwifhat, a Meme token featuring a Shiba Inu wearing a knitted hat, have become the hottest tokens since the speculative token surge during the last bull market over two years ago. In addition, many tokens have risen by over 1000% in the past few days, but their trading prices are still less than one cent.
Teong Hng, CEO of cryptocurrency investment firm Satori Research, said, "Altseason is back. The current situation is similar to the first quarter of 2021."
This resurgence has caused the value of tokens on trading platforms like Solana and Avalanche to skyrocket, making them one of the biggest winners among large tokens this year. On Wednesday, both SOL and AVAX tokens rose by over 10%.
At the same time, the trading price of Bitcoin reached its highest level in over a week as the US Securities and Exchange Commission (SEC) faces a final deadline of January 10th to approve or reject ETFs. Bitcoin rose 4.2% on Wednesday to $44,294. The token, which accounts for about half of the $1.6 trillion market value of cryptocurrencies, last traded at $45,000 in April 2021. At the time of writing, Bitcoin is trading at $43,392.
Hng said, "Positive factors include the imminent approval of a spot Bitcoin ETF in January next year and the recovery of FTX debt claim prices, which are currently priced above $0.50 per dollar."
Driven by the rebound in digital assets, the price of FTX Group's debt claims, a bankrupt cryptocurrency exchange, has soared. According to data from bankruptcy debt brokerage firm Cherokee Acquisition, the current trading price of FTX debt claims ranges from $0.57 to $0.73 per dollar, compared to $0.50 to $0.53 per dollar in late October.