Microcap Surge: Bitcoin Surges to $35.5K, Igniting 'Mini Altcoin Season' and Boosting Crypto Market Cap to $1.3 Trillion

The shift of capital from bitcoin to altcoins continued to gain momentum, although steady investments in BTC funds helped balance the trend, according to an analyst's observation. On Tuesday, Bitcoin (BTC) saw a surge to $35,500, propelled by the broadening altcoin rally and a risk-positive sentiment in conventional markets, pushing the total cryptocurrency market value to its highest point in 16 months.

• Sudden Surge: Bitcoin Rockets to $35,500 in Short Squeeze, Solana Leads Altcoin Rally 
• Expansive Crypto Rally Propels Market Cap to $1.3 Trillion, Reaching Heights Unseen Since May 2022 
• K33 Analyst Advocates Robust Bitcoin Accumulation for November

A calm and slightly subdued trading session took an unexpected turn in the mid-afternoon as bitcoin experienced a rapid spike of almost 3% from $34,600. Some attributed this surge to a potential short squeeze in the derivatives markets. As of the latest data, bitcoin was being traded at $35,600, marking an almost 2% increase over the past 24 hours.

$BTC
Started with spot taker bid ~ mentioned earlier that is required for higher

Perp premium spiking due to shorts getting blown out & probably longs going to chase here https://t.co/vO5UXp8qnS pic.twitter.com/al5ZJEGUfZ

— Skew Δ (@52kskew) November 7, 2023

During the same timeframe, Solana (SOL), toncoin (TON), and Crypto.com's ecosystem token (CRO) registered gains of 5% to 10%, benefiting from the ongoing capital shift towards altcoins. On the flip side, Binance's BNB, Ripple's XRP, Cardano's ADA, and dogecoin (DOGE) experienced slight retractions of 3% to 4%, giving back some of their earlier gains from the week.

Ether (ETH) maintained a stable position at around $1,900 on Wednesday. Nevertheless, one analyst cautioned against underestimating the potential of the world's second-largest cryptocurrency, pointing out that increased activity on its blockchain could drive its price up to $3,000.

With the cryptocurrency rally now extending beyond just bitcoin, the total market capitalization for cryptocurrencies surpassed $1.31 trillion on Tuesday, as indicated by TradingView data. This represents the highest figure since late May 2022, a period marked by the collapse of the Terra ecosystem.

Charting the Total Market Cap: Insights from TradingView  

The growing risk-on sentiment in traditional markets also provided a boost to the digital asset space. The safe-haven asset gold saw its price drop to a three-week low, while West Texas Intermediate crude oil (WTI) experienced a 4% plummet to its lowest level since July. The Nasdaq 100 index advanced by 1.1%, now enjoying a seven-day winning streak.

Future Prospects: Charting the Course Ahead for Bitcoin (BTC)

As the price of bitcoin remains confined within the range of $34,000 to $36,000, the shift of capital into altcoins is giving rise to what's being referred to as a "mini altcoin season," according to a report from K33 Research. This behavior is a common occurrence in the crypto market, where traders tend to reap profits following a substantial BTC rally and redirect the gains into smaller, higher-risk tokens.

Simultaneously, K33 highlighted the accelerating influx of funds into bitcoin-related investments, providing a pillar of support for BTC's price.

 "It's hard, nearly impossible, not to remain bullish,"

 stated Vetle Lunde, a senior analyst at K33. 

"An ETF decision is nine weeks away, and institutional traders are the main catalysts we're seeing in the derivatives market."

 Lunde added, 

>"November is shaping up to be yet another strong month for assertive accumulation of bitcoin, with a plan in place to distribute, reduce exposure, and reallocate to altcoins once the cat's out of the bag."

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