Bitcoin’s Third Straight Month of Gains Fuels Altcoin Comeback

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A Renewed Focus on Alternative Cryptocurrencies

November marked the third consecutive month of gains for Bitcoin, prompting a renewed interest in alternative cryptocurrencies (altcoins) that had initially picked up momentum in October. As a result, the total market value of all cryptocurrency projects, excluding Bitcoin and Ether, has recently reached a peak last seen in August 2022.

Uncertainty Surrounds the Potential for an Extensive ‘Altseason’

The potential for an extensive "altseason" remains uncertain, but various industry sectors that were previously inactive during the bear market are beginning to exhibit early signs of revival. The Cointelegraph Research Monthly Trends report for December 2023 offers a comprehensive analysis of these emerging trends.

Overview of Key Topics Covered in This Month’s Edition

This month’s edition covers a range of topics, including:

Bitcoin Market Trends: Analysis of Bitcoin’s recent price movements and their implications for the cryptocurrency market.
Developments in Decentralized Finance (DeFi): Updates on the growth and evolution of DeFi protocols and their impact on the broader cryptocurrency ecosystem.
Crypto Stocks: Insights into the performance of publicly traded companies involved in the cryptocurrency industry.
Venture Capital (VC) Activities: Analysis of recent VC investments in the cryptocurrency sector, including notable funding rounds and trends.
Derivatives: An overview of the latest developments in the derivatives market, including futures contracts and options trading.
Mining Sector Updates: News and analysis on the current state of the mining industry, including trends in hash rate and mining profitability.
Tokenization of Real-World Assets: Insights into the growth and potential applications of tokenized assets, including real-world assets such as art, property, and more.

Infrastructure and Web3 Lead the Charge in Crypto VC Funding Flood

Amid persistent global geopolitical unrest and elevated interest rates in the European Union and the United States, the cryptocurrency venture capital sector experienced a surge in funding during November. Investment inflows reached $973 million through 93 separate deals, the most significant activity observed since June 2023, representing a nearly 40% increase from the previous month.

Key Takeaways from the Recent VC Funding Surge

The infrastructure and Web3 sectors emerged as leaders in the number of funding rounds, recording 37 and 30 rounds, respectively.
Centralized finance (CeFi) secured the second-highest investment volume this month, with $216.4 million distributed across five deals.
The nonfungible token (NFT) sector concluded the list with a relatively modest three funding rounds, amassing $11.5 million.

Bitcoin Futures Surge in Popularity on the CME

Venture capital activities and modest rallies in minor altcoins indicate a shift of capital toward higher-risk assets. This trend is anticipated to intensify following the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. Leading ETF analysts James Seyffart and Eric Baluchnas recently increased their likelihood estimates for an approval by Jan. 10 to 90%.

Growing Institutional Interest in Bitcoin-Based Exchange-Traded Products

Evidence of this growing interest can be seen in the rising institutional interest in Bitcoin-based exchange-traded products. The Bitcoin futures market on the Chicago Mercantile Exchange (CME) saw open interest escalate by more than 20% in November.

Cointelegraph Research Team

The Cointelegraph Research team comprises some of the best talents in the blockchain industry, bringing together academic rigor and filtered through practical, hard-won experience. With decades of combined experience in traditional finance, business, engineering, technology, and research, the team is perfectly positioned to provide accurate, insightful content on the market.

Additional Report by Ilya Lazarev and Nick M

The opinions expressed in this article are for general informational purposes only. They are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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