Altcoins
Bitcoin mania continues as crypto token nears $73,000; here’s why altcoins failed to catch up
It’s a party mode for Bitcoin investors as the largest crypto token has reached new highs in the first quarter of 2024. The largest and oldest crypto token has surged over 250% during of the last year and 65% during the year. 2024 so far to reach a new high of $72,850 in the last 24 hours.
The Bitcoin craze continues, but other altcoins are lagging behind in reaching new highs or breaking previous records. Bitcoin’s mammoth rally failed to add fuel to the fire of other tokens which saw a decent rise during the catch-up rally but were unable to reach new highs.
Bitcoin’s latest surge was fueled by the approval of Bitcoin ETFs, the upcoming halving event, and institutional buying. It should be understood that other tokens are coming together as a result of the undercurrent in the crypto space, but there is no reason to pull all guns on everyone else.
Altcoins, however, lack the same type of institutional interest and positive news for them. Another thing to note is that altcoins have seen more serious carnage than Bitcoin, with a number of tokens and projects completely disappearing during the crypto winter. Bitcoin’s decline has been passive and it has always been a leader of the pack.
The ecosystem is gearing up to scale new highs and is trying to enter the market for better gains, market experts said. Recently, the London Stock Exchange announced that it will accept Bitcoin and Ethereum exchange-traded notes (ETNs) this year. It should start from the second half of 2024.
The growing institutional acceptance of Bitcoin is acting as a major catalyst for the latest wave. Investors see this as a step towards greater credibility of the asset, said Rajagopal Menon, vice president of WazirX. There is greater liquidity in the market with the $2 billion in Tether freshly injected, indicating the increased demand for Bitcoin among ETFs, he said.
“Altcoins, especially memecoins, aren’t far behind either. Minor retracements after its $70,000 gave impetus to the altcoins’ surge. Solana and Ethereum are already riding this wave with an upside of around 12 to 15 percent over the past week Shiba Inu is expected to reflect similar trends based on its market indicators and is already up 28 percent over the past 7 days,” he said.
Even after the clarifications and arguments of the experts, the figures do not lie. Excluding Bitcoin and stablecoins, the other five largest altcoins by crypto market cap are down 17-83% from their respective all-time highs. However, there may be some exceptions, but the rally dominance has been led solely by Bitcoin.
The total global crypto market cap increased by over 4% in the last 24 hours to reach the $2.7 trillion mark, of which Bitcoin’s share accounts for over $1.41 trillion. Bitcoin dominance is currently at 52.12%, up slightly on the day. The total crypto market volume over the past 24 hours jumped around 42% to $167.05 billion.
Ethereum, the second largest crypto token after Bitcoin, is down around 17% from its all-time high of $4,891.70 reached in November 2021, while BNB is down 22.5% from its all-time high of $690.93, reached in May 2021. Solana is down 41%. while Cardano is 75 percent behind. XRP reached an all-time high of $3.84 six years ago, in January 2018. It is down 83% from that level.
Bitcoin’s rally is fueled by growing interest in Bitcoin spot ETFs from institutional and retail investors. This rise is further compounded by the approach of the Bitcoin halving event, which is expected to take place next month. Both of these are distinctive of Bitcoin, said Edul Patel, CEO of Mudrex.
“However, it is worth noting that Bitcoin’s rise often triggers a similar uptrend in other altcoins. Ethereum has surpassed the $4,000 threshold and is nearing its all-time high. Most crypto- “coins have gained good amounts over the past few months, rising from record highs increasing positive investor sentiment in the crypto market,” he said.
Y-Combinator-backed US-based crypto platform Mudrex has launched US Bitcoin Spot ETFs for Indian investors. Indian investors can buy Bitcoin ETFs with a minimum investment of $5,000 and a maximum limit of $2,50,000. Investors can choose individual spot ETFs and create a personalized basket.