#THE AFFECT BULL RUN ON ALTCOINS.
The impact of a bull run on altcoins is a complex topic that depends on various factors. According to a recent article by Cointelegraph, there are five primary factors influencing altcoin prices:
1. **Job market data**: A strong jobs market goes against the prevalent recession claims and acts as a catalyst for a risk-on rally.
2. **Traders hunt for perpetual swaps with negative funding rates**: As the spot trading volume and liquidity on cryptocurrency exchanges dried up toward the year-end, especially during the holiday season, futures markets gained more influence in moving the prices.
3. **The upcoming Ethereum Shanghai update**: This update is expected to promote the spike in some altcoins such as Lido (LIDO).
4. **Negative funding rate in the futures market**: This implies that most traders are holding short positions, giving an opportunity for whale buyers to run their stop losses.
5. **Resurgence of degen gambling**: The new year has seen the re-emergence of the degen gambling that had taken a back seat after the collapse of FTX in November. A memecoin price surge is evidence of the residual degen spirit.
According to BeInCrypto, despite a 2.3% drop in total crypto market capitalization, altcoins like Dogecoin and Avalanche are seeing significant gains. This indicates that altcoins are showing strength in patterns that mirror previous bull market cycles, despite Bitcoin's major moves. Analysts observe uptrends in altcoin strength and the crossing of the 50-week simple moving average barrier.
Lastly while a bull run may have a positive impact on the price of altcoins, it is difficult to predict the exact magnitude of this impact and how long it will last$BTC $SOL $XRP
