Altcoin Massacre | Without a bank

Scourge Alts. Risk assets have been brutalized this week, with a sharp decline Tuesday morning, followed by a slight decline Wednesday following a seemingly hot inflation number and nothing but declines throughout Friday’s session. What is happening in the markets and is there cause for concern?

The S&P 500 fell 1.7% this week, marking the index’s biggest weekly sell-off since the market bottomed last October, and the further out on the risk curve, the greater the losses become dramatic.

Although Bitcoin’s peak-to-trough losses, which exceeded 10% this week, may seem substantial compared to those of the stock market, they are muted compared to the significant declines suffered by other crypto tokens, the falling prices of BTC combining with an increase. in domination to massacre the alts.

Bitcoin Dominance broke above resistance that had been in place since December 2023, trading above the 55% mark for the first extended period since April 2021. This rise coincided with a massive red candle on the ETH/BTC ratio , which was rejected. the key support level of 0.05 before moving lower to set a new 2024 low.

Source: Trading View

While some on Crypto Twitter had already expressed confidence that Bitcoin Dominance’s rejection above the 55% level would herald the arrival of alt season, today’s violent rise should cause believers to question such notions.

Moving further along the risk curve, popular memecoins and freshly dumped tokens suffered even heavier losses on Friday, ranging from the high teens to low 20s in percentage terms.

It should be noted that this withdrawal coincides with the arrival of tax season in the United States, which will likely act as a major liquidity drain, forcing filers to sell assets to meet tax obligations for a 2023 year. filled with winnings.

Friday marked the last opportunity for many traders to sell in time to cover their outstanding tax obligations, and it is possible that markets will rebound next week with this source of additional selling pressure now eased.

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