Altcoins
Bitcoin recovers the $70,000 mark; is it time for altcoins to outperform?
After heavy profit-taking, Bitcoin reclaimed the $70,000 mark in early Asian hours on Tuesday, as the largest crypto token rose more than 5%. Bitcoin’s resurgence pushed other crypto altcoins higher in the first few days.
Recently, Bitcoin has been hogging the spotlight and hitting new highs, delivering multibagger returns to investors following the approval of Bitcoin ETFs, a surge in institutional interest, and its highly anticipated lineup of Bitcoin halving events soon. However, the recent profit-booking period has pushed prices around the $60,000 mark.
Bitcoin rose 5.35% to $70,850, according to data suggested by Coinmarket cap. The market cap of the oldest cryptocurrency currently stands at $1.39 trillion, with its dominance increasing by a quarter percent to 51.90 percent of the entire cryptocurrency market cap .
The global market capitalization of the crypto space increased by around 4.7% to $2.67 trillion in the last 24 hours. The total crypto market volume saw an increase of over 40.8% to $112.11 billion in the last 24 hours.
The recent capital outflows marked the end of a 7-week cycle of capital inflows, largely attributed to investor hesitancy over the price correction. The large outflows seen last week by spot Bitcoin ETFs were likely caused by bankrupt lender Genesis selling GBTC shares. This recovery suggests renewed confidence in Bitcoin despite recent market fluctuations, said Rajagopal Menon, vice president of WazirX.
“The recent increase in Bitcoin’s consumed age metric indicates a significant increase in dormant Bitcoin addresses in motion. This increase suggests a resumption of network activity, accompanied by an increase in transaction volume. As “As Bitcoin’s consumed age measure increases, trading volume tends to increase, potentially signaling an imminent price rise,” he said
Consumed age is a metric that is growing in importance in cryptocurrency analysis and provides valuable insight into Bitcoin activity and sentiment. It tracks the movement of previously dormant addresses, reflecting the scale of the transfer of long-held coins.
“Despite Bitcoin’s market dominance, speculation is swirling about an upcoming altcoin season. Altcoins have seen net inflows, with notable performers like Polkadot, Avalanche, and Litecoin. Although Bitcoin has seen moderate gains, some altcoins have outperformed it over the past week,” Menon added.
Bitcoin’s rally has pushed other altcoins higher. Among the top 20 altcoins, Ethereum, Solana, Dogecoin, Cardano, Avalanche, Shina Inu and Chainlink rose 4-6% each. Among other names, Fetch.ai, Bonk, Internet Computer, Pepe, Arweave and Near Protocol have increased by 10 to 15 percent in the last 24 hours.
The market appears optimistic and Bitcoin prices are rebounding after a 10-day decline. The fact that Bitcoin has reclaimed the $70,000 level indicates that the market is ready to reach new highs before the halving, in 25 days, said Vikram Subburaj, CEO of Giottus Crypto Platform, who considers the will of the US Fed to adjust to higher inflation over a slightly extended period as a key factor.
“As industry observers wait for price discovery and new highs, we can also see an uptick in other assets like Ethereum, Solana, and Avalanche. As usual, the BTC price surge will have an effect in cascade on the ecosystem and we hope to see a good progress in the coming weeks,” he added.
Bitcoin has rallied with about 25 days to go until the next Bitcoin halving. Halving events have typically been followed by a sustained rise in bitcoin and altcoin prices, which typically span several years, said Kumar Gaurav, founder and CEO of Cashaa.
“While past performance in the financial world does not always predict the future, the sustained rise we have already seen in bitcoin prices this year could portend good times ahead for the largest cryptocurrency,” he said. declared.
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