Here’s What Could Stop The Altcoin Bull Rally Dead In Its Tracks
February 07 2023 - 1:00PM
NEWSBTC
The majority of altcoins in the crypto space have been rallying
independently of the largest cryptocurrencies in the space.
However, while this has been good so far, it could also present a
possible roadblock for the altcoin bull rally. Bitcoin And Ethereum
Could Cause A Problem Over the last week, while multiple altcoins
have been rallying and seeing double or triple-digit gains, the
price of the two largest cryptocurrencies in the space, namely
Bitcoin and Ethereum, have not seen much upside. They have
continued to consolidate without affecting the market. Related
Reading: Crypto Market Still Reeling As Bitcoin’s Break Above
$24,000 Triggers Liquidations According to a report by on-chain
data aggregator Santiment, this has seen the likes of HEX and GRT
rally tremendously. Also, during this time, AI tokens such as FET
and AGIX have done well, enjoying the continued attention being
given to artificial intelligence by investors. However, Santiment
cautions investors who are putting money into small and mid cap
altcoins at such a time. The problem here lies in the fact that
these altcoins are seeing price increases without any positive
movement from Bitcoin, which is an established market mover. 📊
February hasn't seen a repeat of excitement for #Bitcoin &
#Ethereum like we saw in January. But #altcoins like $HEX (+64%),
$TMG (+70%), and $GRT (+66%) have had other plans this past week.
Be cautious, though, when money is cycling into mid/small caps
without top cap rising. pic.twitter.com/TYO8pNh5yF — Santiment
(@santimentfeed) February 7, 2023 Thus, if the prices of Bitcoin
and Ethereum begin to move once more, it could drain liquidity from
these small and mid caps as investors rush back into established
coins. The result of this would be a massive decline in price that
could very well wipe out all of the gains established over the last
week. Altcoin Bull Rally May Continue Now, while there is certainly
some threat from Bitcoin and Ethereum suddenly moving, the altcoins
have shown strength. For example, the market dominance of bitcoin
has dropped 1% in the last week, falling from 44.21% last Friday to
its current dominance of 43.40%. Likewise, Ethereum’s market
dominance fell from 19.84% on Friday to 19.69% today. BTC dominance
drops in the last week | Source: Market Cap BTC Dominance on
TradingView.com Given this increase in altcoin dominance, it
proposes that the rally may not be as significantly affected when
Bitcoin and Ethereum begin moving. Also, altcoins could also enjoy
some upside if these large cap assets begin rallying once more. But
for now, the price performance of BTC and ETH remains muted.
Related Reading: Will Bitcoin Price Return To $20,000? Here’s What
Investors Expect According to data from Coinmarketcap, the most
profitable altcoins over the past week have been the AI tokens.
AGIX is up 224% in the seven-day period while FET is seeing 109%
gains in the same time period. Others include GRT with 95% gains
and OCEAN with 55% gains. Follow Best Owie on Twitter for market
insights, updates, and the occasional funny tweet… Featured image
from Bounteous, chart from TradingView.com
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