Why Altcoins Such as Jasmy, Chainlink, Dogecoin, and Pi Network Are Gaining Traction
Bitcoin and various altcoins began the month positively, with the total market capitalization of all cryptocurrencies skyrocketing beyond $3 trillion.
The price of JasmyCoin (JASMY) jumped by 6.2%, while Chainlink (LINK), Dogecoin (DOGE), and Pi Network (PI) saw increases of over 5%.
These price surges followed Bitcoin (BTC) breaking out of two weeks of consolidation, exceeding a significant resistance level at $97,000 for the first time since February. Historically, altcoins tend to perform well during Bitcoin’s upward trends.
Analysts remain hopeful about Bitcoin’s ongoing growth. Ark Invest has forecasted that the cryptocurrency could reach $2.4 million by 2024, while analysts at Standard Chartered estimate it may rise to $120,000 by the end of the year. In a comment to crypto.news, Joe Burnett, an analyst at Unchained, projected Bitcoin could hit $250,000, stating:
“I certainly wouldn’t be surprised to see Bitcoin reach $200,000 or even $250,000 this year. If the price gains momentum and breaks a new all-time high, things could get quite intense, potentially going parabolic… all the narratives are aligned, and the macro conditions are favorable.”
Altcoins surged as the US stock market climbed
Altcoins also saw gains as the US stock market rose. The Dow Jones, S&P 500, and Nasdaq 100 indices all increased by over 1%, continuing a rally that followed a period of substantial selling triggered by President Trump’s “Liberation Day” tariff announcement.
The rise in these assets comes as market participants expect Donald Trump may act to unwind tariffs, particularly after the latest US GDP report indicated the economy contracted in the first quarter due to a rise in imports.
Furthermore, the stock market has lagged behind the performance of other presidents at similar stages in their presidencies. This marks the weakest performance since 1974, when Gerald Ford assumed office. Consequently, Trump might consider negotiating with China to support the stock market.
The Federal Reserve may also intervene to lower interest rates to prevent a recession. The chances of a 25-basis-point cut in the upcoming June meeting on Polymarket have risen to 47%, surpassing the likelihood of no change.
Historically, Bitcoin and altcoins like Jasmy, Chainlink, Dogecoin, and Pi Network thrive when the Federal Reserve reduces interest rates. A notable example was during the pandemic when they surged, followed by a decline in 2022 as the bank began its rate cuts.