Photo = Shutterstock While Bitcoin has surpassed the ‘psychological resistance level’ of $70,000 and continues its upward trend, expectations are spreading in the cryptocurrency market that altcoins (cryptocurrencies other than Bitcoin) that have risen less so far will be able to rebound significantly. .
The price of altcoin leader Ethereum (ETH) is trading at $2643, up 1.08% from the previous day, based on the Binance USDT market at 13:08 pm on the 30th. At the same time, ETH/BTC, which represents the relative value of Ethereum compared to Bitcoin (BTC), shows 0.03657 and continues to fall.
On this day, Bitcoin (BTC) dominance (Bitcoin’s share of the total market capitalization of virtual assets) continued to rise to 59.9%. It is interpreted that Bitcoin’s recent rise has been greater than that of many altcoins.
Meanwhile, on this day, the kimchi premium (price difference between foreign exchanges and domestic exchanges) of major virtual assets such as Bitcoin (BTC) is recording 0.41%.
Many altcoins failed to rise even 50% from September lows… “A big rebound is coming”
After the U.S. central bank (Fed) implemented a big cut in interest rates (a 0.5% point cut in the base rate) in September, Bitcoin continued a ‘V-shaped’ rebound, exceeding $70,000, but the altcoin market’s performance fell somewhat short of expectations. There are observations that it is reaping .
Price movements of altcoins ranked in the top 100 by market capitalization. Photo = Coin Market Cap Among the top 300 altcoins in market capitalization traded in the Upbit Korean won market on this day, coins such as Sui (143%), Big Time (163%), and UXLink (156%) hit their lowest point in September (8th last month). (Sun), the increase rate exceeded 100%. Dogecoin (82%), the representative memecoin, followed by Aptos (80%), Ark (77%), and Pendle (70%). During the same period, Bitcoin rose 35%.
On the other hand, there were many coins that failed to achieve an increase rate of 50% during the same period. In particular, ‘blue chip’ altcoins with large market capitalization have not achieved significant results compared to Bitcoin’s recent rise. Ethereum (20%), Tron (15%), Near Protocol (17%), Avalanche (26%), Chainlink (12%), Polkadot (7%), Ripple (2%), Ethereum Classic (13%), Arbitrum (14%), Abe (28%), The Graph (16%), Bitcoin SV (19%), and Polygon Ecosystem (-7%) showed relatively small increases. It seemed.
Also, Stacks (39%), eCash (22%), Bitcoin Gold (21%), Chiliz (31%), Cardano (13%), LayerZero (14%), and SpaceID (36%). , BitTorrent (16%), PolyMesh (20%), Blast (5%), Exi Infinity (19%), Mina Protocol (37%), Sandbox (10%), Gas (35%), Aisher (14%), Flow (5%), and 1 Inch Network (13%) also showed a small rebound compared to the previous decline.
Altcoin market capitalization is expected to maintain an upward trajectory. / Photo = Max “It appears to be ready to rise,” he analyzed. The media added, “If buying power flows in at the current level, altcoin prices may rise higher,” adding, “Market participants are keeping an eye on trends such as altcoin market capitalization.”
Typically, when Bitcoin’s market share rises sharply in a bull market, funds chasing profits move to altcoins, leading to a cyclical market. Just as the exchange of leading stocks between large and small-cap stocks frequently occurs in the stock market, Bitcoin and altcoins also circulate and lead the market in the coin market. This is why investor attention is focused on undervalued altcoins.
“More funds flowing into Bitcoin… “I’m waiting for the altcoin season.”
Market experts analyzed that the cryptocurrency market is calmly waiting for the altcoin season to arrive, focusing more on Bitcoin, which is on the rise. Meanwhile, on-chain analysts analyzed that investor buying power continues to flow into undervalued altcoins.
BeInCrypto, a cryptocurrency media outlet, said on the 27th, “Altcoin season refers to a bull market in which at least 38 coins out of the top 50 altcoins by market capitalization have outperformed Bitcoin over the past 90 days, but currently, there are no coins that have outperformed Bitcoin this much. “There are only 7,” he said. “As investor funds continue to flow into Bitcoin, altcoins’ breakthrough momentum is lacking.” For the time being, investors will focus more on Bitcoin, which has continued its upward trend.
There are also predictions that liquidity in the cryptocurrency market will be more concentrated in Bitcoin for the time being. QCP Capital, a Singapore-based virtual asset trading company, said, “Bitcoin dominance continues to rise and reached 59.75% last week, reaching the highest since April 2021,” adding, “As Bitcoin is trying to break its all-time high, Bitcoin “I think it is highly likely that the upward trend in dominance will continue,” he analyzed.
There are predictions that the value of altcoins compared to Bitcoin is likely to continue to weaken. / Photo = Benjamin Cowen “The indicator of the value of altcoins relative to Bitcoin (ALT/BTC) has continued an overall bearish trend over the past three years and has consistently underperformed,” said Benjamin Cowen, a famous cryptocurrency analyst. The ‘rise’ is merely a temporary rally amidst weakness. “The value of altcoins compared to Bitcoin is likely to continue to decline and weaken until the end of the year,” he predicted.
While overall altcoin sentiment has not improved significantly, there are concerns that a short-term adjustment may continue. Michael van der Popp, a famous cryptocurrency strategist, said on his YouTube channel, “Altcoin sentiment has not yet improved significantly,” and added, “The current cryptocurrency market is fluctuating with U.S. macroeconomic indicators (such as U.S. bond yields) and the U.S. presidential election. . “The arrival of altcoin season may depend on the amount of liquidity flowing into the market,” he predicted.
There is a possibility that the cryptocurrency market will begin a four-year bull market. / Photo = Michael van der Pope YouTube capture He said, “If you think the cryptocurrency market will repeat the 4-year bull market, now may be a good time to open an investment position,” but added, “The market will recover in the next 3-4 weeks.” “There is also a possibility of testing the floor first,” he analyzed. He added that investors who have already entered altcoins are recommended to hold on to their positions rather than dispose of them despite short-term weakness.
Meanwhile, some analyzes say that the cryptocurrency market has high potential for growth after the U.S. presidential election. Kaico, a cryptocurrency data analysis company, said, “Derivatives investors predict that the cryptocurrency market will rise no matter which of Trump or Harris is elected. “Institutional investors are also betting on strength through option block deals (after-hours bulk trading),” he predicted. “Volatility is expected in the short term, but the cryptocurrency market is expected to benefit from this atmosphere in the long term.”
Kang Min-seung, Blooming Bit Reporter minriver@bloomingbit.io
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