Altcoins Dominate Crypto Market Rally Amid Trump-Induced Liquidity Surge

The cryptocurrency market has seen a significant shift in trading activity, with altcoins dominating Bitcoin's rally. According to CryptoQuant analyst Darkfost, investor attention and capital have moved strongly toward altcoins, 'potentially signaling a broader resurgence of risk appetite across the market.'

Bitcoin gained nearly 25% over the past week, while altcoins amplified the trend. The total altcoin market capitalization, excluding Ethereum, increased by around $135 billion during the same period.

The trading activity on Binance also showed a notable change, with altcoins accounting for as much as 65% of total volume at their peak. Bitcoin made up just 21% of volume, while Ethereum accounted for 13.6%. Darkfost said that altcoins had not held this much of Binance's trading volume in two years.

The shift came after several announcements from Trump on August 19, including his call for the US to purchase large amounts of BTC and for Congress to pass the Clarity Act. Darkfost said the announcements helped push liquidity into altcoins.