Bitcoin is back above $100,000 after a slight correction early this week. A 2024 Pew Research Center poll shows that 17% of U.S. adults say they have ever invested in, traded, or used a cryptocurrency. This statistic has been unchanged since 2021. 

Bitcoin’s rally past $100,000 has resulted in fear of missing out among many investors. The Fear and Greed Index that gauges market sentiment reads “extreme greed.” However, sidelined traders looking to enter trades could consider cheap altcoins as alternatives to the largest cryptocurrency in this market cycle. 

Trump’s crypto plans catalyze gains in Bitcoin and altcoins 

The incoming U.S. President Donald Trump told CNBC’s Jim Cramer at the New York Stock Exchange on Thursday, “We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead.” 

Trump answered questions about the potential strategic Bitcoin reserve, stating that there would be something great, fueling a positive sentiment among crypto traders.

Previously, Trump’s pro-crypto stance and nomination of crypto-friendly candidates for key positions like AI & Crypto Czar and U.S. SEC Chair have assuaged crypto market participants’ regulatory and policy-related concerns. 

Bitcoin made a comeback above $100,000 after its correction earlier this week; altcoins rallied alongside the largest cryptocurrency since mid-week. As the market recovers from the flash crash, cheap altcoins pose an investment alternative for traders who may have missed Dollar cost averaging to buy Bitcoin this cycle. 

The launch of Google’s new computing chip raised concerns among crypto traders regarding the security of their Bitcoin holdings. However, there is no significant impact on price. Addressing these concerns, Dario Lo Buglio, Head of Blockchain & Co-founder of Brickken, told crypto.news:

“The recent achievement in quantum computing made by Google only shows what we already knew for years.

The majority of the encryption used in everyday tasks from banks to data processing are based on encryption techniques which take the assumption that quantum computing would have taken too many years to practically be an issue today […].

A recent research from Sussex university suggests that one will need a quantum computer with 13M qubits, and what Google achieved is 105 qubits […].This should remind us to update our system to quantum resistant encryption schemes as fast as possible.”

Bitcoin options data suggests rally could extend 

Options data paints a bullish picture for the cryptocurrency with a $2 trillion market cap. The 25-delta risk reversal for Bitcoin over 14 days is 3.75985. This means that the implied volatility of calls is greater than the implied volatility of puts, signalling a bullish sentiment. More market participants are betting on a rise in Bitcoin price, while BTC holds steady above $100,000 across spot exchange platforms. 

A put-call ratio of 0.55 or lower indicates a strong bullish sentiment in the market, more calls are being purchased than puts. Derivatives traders are expecting a bullish market and this supports the price gain thesis for BTC. 

Implied volatility has declined since BTC’s return above $100,000 on Wednesday. The hourly chart shows a drop in the past 24 hours. 

Typically, a decline in IV implies traders expect stability in prices, and significant fluctuations are less likely to occur. Bitcoin affirms the thesis and holds steady above a key psychological barrier. 

Altcoins could rally as altseason returns

The altcoin season index at the blockchain center has climbed to 71 on a scale of 0 to 100. While a reading of 75 indicates that it is altcoin season, between December 9 and 12, the index added 6 points. 

Altcoin season is the time period where 75% of the top 50 altcoins outperform Bitcoin for a period of 90 days. The index shows the market is closer to the second leg of altcoin season, which could push token prices higher in the coming weeks. 

Cheap altcoins to consider this cycle

Three key narratives support the list of cheap altcoins that could help sidelined buyers gain an edge over Bitcoin holders this cycle: 

• Ethereum (ETH) could outperform Bitcoin with rising inflows from institutions, retail traders, and bullish options metrics. This paves the way for Ethereum beta plays, Layer 2 tokens, staking tokens, Ethereum-based meme coins, DeFi tokens like AAVE, Pendle (PENDLE), Maker (MKR), Ethereum Name Service (ENS), and Pepe (PEPE), among others. 
• Gaming tokens and Artificial intelligence tokens could see a resurgence in demand among traders with rising AI relevance. 
• Bitcoin-based meme coins could compete with Ethereum, Solana, and XRP-based memes. 

Alvin Kan, COO of Bitget Research told crypto.news:

“The emergence of new meme coins on platforms like XRPLedger and Solana introduces increased competition for established or blue-chip meme coins like DOGE, SHIB, FLOKI, BONK, and WIF. This competition can potentially dilute the market attention and capital that would otherwise flow to these legacy tokens.[…].The introduction of new tokens might stimulate overall interest in the meme coin sector, potentially benefiting all meme coins by attracting new investors to the market.”

Aerodrome Finance (AERO) is a token of a liquidity hub in the Base ecosystem. AERO averages over $1 million in fees a day, and is a leading decentralized exchange on Base, an Ethereum beta play. AERO ranks 92nd in market capitalization. 

AERO is trading in the buy zone between $2.080 and $2.146. The previous all-time high for AERO is $2.372, the token is less than 4% below this level. The 161.8% Fibonacci retracement of the rally from November low to December peak sets a target of $3.142 for price discovery this cycle. 

Two technical indicators, relative strength index and moving average convergence divergence support the bullish thesis for the token on the daily timeframe. 

Beam (BEAM) token is the native crypto asset for a gaming network powered by Beam DAO. The ecosystem comprises gamers and developers and this altcoin ranks 85th by market capitalization on CoinGecko. 

BEAM fits into the gaming token narrative of the ongoing market cycle and recently announced the integration of AI into its gaming, supporting innovation. 

BEAM is nearly 23% below its 2024 peak of $0.044300. The buy zone for the gaming token is $0.028501 to $0.029940. MACD flashes green histogram bars supporting the thesis for gains in BEAM. 

Chainlink (LINK) is the biggest oracle network in crypto and enables cross-chain communication for several traditional and decentralized finance platforms. LINK ranks in the top 20 cryptocurrencies by market capitalization. 

The buy zone for LINK is between $29.09 and $31.09, in the imbalance zone on the weekly price chart. The targets are the November 2021 high at $38.31 and the all-time high at $53. 

Pups World Peace (PUPS) ranks 379th by market capitalization, above $232 million. PUPS erased nearly 9% of its value in the past 24 hours. PUPS dipped under the buy zone between $0.211139 and $0.230000. 

The meme coin recently hit a high of $0.405265, its November 2024 peak. This is the target once PUPS recovers from its correction. The token is in an uptrend as of Thursday. 

RSI reads 44, under the neutral level at 50 and MACD shows an underlying negative momentum in PUPS. 

AAVE, the DeFi token that ranks 34th by market capitalization, and price is nearly unchanged in the past day. AAVE’s market capitalization has crossed $5.43 billion and the token could extend its gains per technical indicators. 

AAVE’s buy zone is between $288.09 and $294.76. AAVE could target the October 2021 peak at $459. Both momentum indicators support a bullish thesis for the DeFi token. 

Strategic considerations

The crypto market cycle in 2024 is different from previous bull runs as most institutional capital inflow is geared towards Bitcoin. The narrative of “capital rotation” does not hold as much ground in the ongoing bull run. 

Options metrics signal Bitcoin price could hover close to the psychologically important $100,000 level. The return of altcoin season could send prices higher, however there is always a likelihood of a market correction if Bitcoin observes a flash crash. 

Ryan Lee, Chief Analyst, Bitget Research, told crypto.news:

“Bitcoin’s rising dominance could temporarily divert investment away from altcoins. However, history suggests that once Bitcoin stabilizes, altcoins often experience a resurgence. Investors frequently enter Bitcoin at new highs, anticipating sustained upward momentum, which could further propel its price in the short term.”