Will altcoin prices ever come back down to Earth? It's understandable if investors are starting to feel like these prices will just keep shooting upward forever. This week, the already soaring prices of many altcoins just continued to climb even higher. While not every altcoin joined the stratospheric surge, quite a few saw their values balloon.
Take BNB, for instance. According to data collected by S&P Global Market Intelligence, it soared by 16% in this period. Similarly, MultiversX and Optimism’s token, both from the multiverse digital currency scene, also spiked by the same percentage. Theta Network wasn’t far behind, boasting an almost 10% increase.
The ongoing surge in altcoin prices stems from various factors, but one of the most prominent seems to be a shift in investment focus. Data analysis by Coinalyze showed a marked increase in open interest for altcoins since January 2022, paired with a decline in interest for Bitcoin, the original crypto superstar.
Adding to this, Bitcoin experienced a slight upswing mid-week. MicroStrategy’s Michael Saylor, a vocal Bitcoin advocate, announced yet another hefty investment in the coin, totaling around $616 million. Predictably, this news gave Bitcoin a temporary boost, followed by profit-taking and a subsequent dip. This dip, however, only made altcoins more appealing to many investors, fueling the ongoing rally.
