Gemini’s $120 Million Investment in Alternative Coins, Including ETH, Amid Predictions of 2025 Altcoin Season
Gemini exchange has recently acquired close to $120 million in alternative coins, such as Ethereum [ETH], Chainlink [LINK], and meme-based coins like Shiba Inu [SHIB] and Pepe [PEPE].
Based on reports from Spot On Chain, ETH made up the majority of Gemini’s alternative coin portfolio, with the exchange securing a significant $103 million within the past 18 days.
Potential Altcoin Rally in 2025?
Many analysts are anticipating the commencement of the Fed easing cycle as a probable catalyst for a potential altcoin season surge.
While there was some positive momentum among certain alternative coins in September, leading to double-digit recovery gains, not all altcoins experienced consistent favorable results.
The recent spike in Bitcoin’s dominance to a record 60% could potentially postpone the anticipated altcoin rally in 2024, with some experts suggesting a potential altcoin surge might materialize in early 2025.
Well-known market analyst Benjamin Cowen shared a similar view, noting that historical patterns indicate a possible weakening of altcoins towards the end of 2024, followed by a rebound in 2025. He expressed,
“The period of adjustment for altcoins should conclude by December 2024 (or possibly by the second week of January 2025).”
If this scenario unfolds, the current decline in value among premium altcoins could present lucrative buying opportunities to maximize potential gains during the anticipated altcoin surge in 2025.
Interestingly, the handpicked altcoins accumulated by Gemini displayed attractive discounts. For instance, ETH appears undervalued, as evidenced by unfavorable MVRV (Market Value to Realized Value) and MVRV Z score figures.
This metric compares the asset’s current price against the average purchase price of all acquired assets.
A higher score signifies “overvalued” conditions where more investors are in profit and likely to sell. Conversely, negative figures suggest “undervaluation.”
As of the latest data, ETH had MVRV readings of -15% for the 180-day period and reached yearly lows with the MVRV Z score. This suggests that ETH might be relatively cheap at its current valuation.
Moreover, analyst Ali Martinez emphasized the favorable risk-reward ratio ETH could present if it defends the $2,400 support level and reaches $6,000.
Likewise, LINK exhibited signs of being undervalued, supported by its negative MVRV Z score. In essence, if the projected altcoin rally in 2025 materializes, the top alternative coins in Gemini’s portfolio could yield substantial returns.