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NewsBTC 2025-05-28 05:00:38

TRON’s Correlation With Bitcoin Could Mean Massive Gains, Here’s Why

TRON (TRX) has been gaining upward momentum alongside the broader cryptocurrency market, reflecting strong price performance in recent weeks. The crypto asset has climbed over 10% in the past month, with its current price at $0.2748, reflecting a modest 0.7% increase in the past 24 hours. While not grabbing headlines with dramatic surges, TRX’s steady growth aligns closely with the broader bullish cycle led by Bitcoin (BTC), suggesting that it may benefit from macro-level investor sentiment. A recent analysis by Carmelo Alemán, a contributor to CryptoQuant’s QuickTake platform, highlights the increasing relevance of TRON in this market phase. Related Reading: Tron Bulls Regain Control – On-Chain Data Shows Fresh Buying Pressure Bitcoin Correlation Fuels Investor Optimism Alemán’s report, titled “The Crypto Elite Grows with Bitcoin and Why TRX Holds a Special Place,” explores how assets that demonstrate high correlation with Bitcoin, such as TRX, tend to mirror BTC’s market movements. This statistical connection, typically measured through correlation coefficients like Pearson’s, means that Bitcoin’s gains or retracements often influence similar movements in tokens like TRON. According to Alemán, the ongoing Bitcoin bull market, expected by some to last through Q4 2025, sets a favorable context for assets with strong historical correlation to BTC. Tokens, including TRX, SUI, ADA, XLM, HBAR, and Litecoin, are often observed to track Bitcoin’s behavior, rising during rallies and pulling back during corrections. For many investors, these assets present attractive opportunities given their lower market capitalizations compared to Bitcoin, making them capable of delivering larger percentage gains during bullish conditions. The analyst said: In practical terms, Bitcoin is unlikely to grow more than 2x from its current price, whereas highly correlated tokens could triple, quadruple, or more, simply because their smaller market caps make such expansions more feasible. In particular, Alemán draws attention to TRON’s upward momentum and growing network activity, especially in Asia. Notably, TRON recently surpassed Ethereum in the volume of USDT (Tether) issued on its network, signaling a shift in real-world utility and adoption. Alemán wrote: This is no small development: it reflects a restructuring in real network usage, and suggests that Tron could multiply significantly in value in the coming months, as it continues to move in tandem with Bitcoin’s trend. TRON Long-Term Growth Potential Beyond price action, Alemán also underscores TRON’s position in strategic portfolio planning. Because of its correlation with Bitcoin and its smaller relative size, TRON offers potential leverage to BTC’s market cycles. For long-term holders and tactical traders alike, this dynamic presents opportunities for outperformance during phases of sustained Bitcoin growth. Related Reading: TRON Accumulation Phase Detected—Major Price Surge Coming Alemán concludes by advising market participants to remain attentive to on-chain indicators and inter-asset relationships, emphasizing that informed decisions based on correlation dynamics could enhance portfolio returns during this cycle. Featured image created with DALL-E, Chart from TradingView

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