With the leading cryptocurrency apparently stuck in neutral, bullish crypto investors were snapping up other coins and tokens in the hopes of earning better returns.
Although not every altcoin was getting swept up in the action, more often than not the segment was a winner as of late afternoon trading. Meme token Shiba Inu (CRYPTO: SHIB) was up by nearly 8% from 4 p.m. ET, while Stacks (CRYPTO: STX) was outpacing it with a more than 10% rise. Edging past that pair were Polkadot (CRYPTO: DOT) and Cronos (CRYPTO: CRO), both of which were trading around 12% higher.
Bitcoin hesitation and a pleasing pick for SEC chair
Since the U.S. presidential election, it's been something of a given among crypto-heads that the incoming administration will be relatively more favorable to their beloved industry. Still, when an individual seen as supportive of cryptocurrencies is proposed as a candidate for a crucial position atop a federal agency, it's considered a boon for coins and tokens generally.
That was certainly the case on Hump Day, with president-elect Donald Trump nominating Paul Atkins to chair the Securities and Exchange Commission (SEC). Atkins is hardly a stranger to the regulatory agency, as he served as one of its commissioners from 2002 to 2008. He's known as a crypto industry supporter, and the consulting firm he leads, Patomak Global Partners, has clients active in the business.
While Trump's Republican party has a thin majority in the Senate, the body that confirms the SEC chair nominee, it is nevertheless a majority. Plus, Atkins has significant experience in both the business and regulatory realms and isn't a particularly controversial pick -- in contrast to several of Trump's cabinet hopefuls.
Meanwhile, crypto investors seem to be sidelining Bitcoin for now. The No. 1 coin's value is teasing, but (as of this writing) not topping the vaunted $100,000 price line. Many might feel that Bitcoin's rally is running out of gas or that the market collectively isn't ready for it to join the highly exclusive six-figure club. Whatever their reasoning, it seems they're considering selected altcoins to be better plays just now.
A holiday break?
While the mentioned cryptos reacted favorably to the Atkins selection, I don't see it as a sustaining catalyst for the asset class. If anything, I think most coins and tokens will cruise from now until the holiday season, then pick up some as the January Effect takes hold. The situation might be different if Bitcoin manages to break the $100,000 barrier in the coming days; should that happen, we can expect a sympathy pop with altcoins, too.
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Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
