The price of Bitcoin rose to a record high to the point 60 000 USD. However, BTC is unable to break this limit and has therefore been consolidating below it for several weeks. What about altcoins?
Many people are starting to feel that a train has passed them with bitcoins. That’s why they’re now looking for different alternatives to maximize their profits. He sees his chances in altcoins.
How is the crypto market moving?
Supply and demand are one of the critical elements that control the crypt market. The level of supply and demand is still affected by various factors. For example, during bull markets, we see small and institutional investors entering the market and increasing buying pressure.
Once Bitcoin reaches its peak (which is not easy to catch), traders will move their BTC to altcoins in anticipation of further increases in their profits. This happened in 2017 after the bull market and it could happen again.
One thing is for sure, cryptocurrency prices fluctuate in line with market trends. For example, when the price of Bitcoin rises, they usually follow altcoiny. The same thing happens if Bitcoin falls. Sometimes, however, some altcoins can move at higher levels than bitcoins in terms of percentage gain.
Why do bitcoins still reach their maximum?
During this bull market, analysts suspect that two main factors are pushing Bitcoin to a higher maximum. Demand from institutional investors and more money in circulation.
Recently, institutional investors such as MassMutual, MicroStrategy, Tesla and Square have purchased bitcoins (BTC). The number of companies and companies entering the market could grow exponentially in the coming years, which will strengthen public confidence in the cryptocurrency and move the price of BTC even higher.
It is also worth noting that the limited supply of bitcoins and halving play a crucial role in the price of bitcoins. Imagine that demand grows as the amount of BTC in the market decreases over time; it is quite likely that the digital currency will reach new highs again.
How do altcoins respond to bull run BTC?
The cryptocurrency market usually revolves around Bitcoin sentiment. However, it’s no surprise that altcoiny overcome BTC during the alt season. According to research, almost 75% of the top 50 altcoins grew thanks to Bitcoin.
The apparent connection thus suggests that when bitcoins reach new historical highs, altcoins are likely to follow. However, growth is still highly dependent on trading volume and liquidity.
Tokens with potential
More than 5,000 altcoins are available today, but which token has the best return on your investment?
Theta (THETA)
As the video streaming market continues to grow and sites such as YouTube continue to create barriers, Theta blockchain could serve as an excellent alternative for viewers and content creators, thanks to its fast and easy upload and streaming. In addition, Theta also enables peer-to-peer sharing and earns TFuel when streaming; it is only a matter of time before the token price rises.
Chiliz (CHZ)
Chiliz is one of the biggest blockchains for e-sports and game crowdfunding. Its goal is to give fans of sports and e-sports the opportunity to manage their favorite teams, games, leagues and events. Chiliz aims to create a platform offering tokenized solutions for companies and individuals.
Decentraland (MANA)
With the expansion of NFT, Decentraland is a virtual world where users can buy, sell and develop LAND. This is the irreplaceable token ERC-721, which represents the ownership of virtual land in Decentraland. In general, Decentraland is managed through DAO, which owns Decentraland’s most important smart contracts and assets.
Conclusion
Diversifying the portfolio towards altcoins is certainly a reasonable basis for the entry of any trader. However, market entry alone is not enough to make a profit. We therefore recommend that you carry out a careful analysis, market research and, above all, invest only as much as you can afford to lose.
This article does not contain investment advice or recommendations. Each investment and business move involves risk, and readers should conduct their own research when making decisions.
–
