Altcoins plunge while Bitcoin skyrockets near $50K
Bitcoin is under a bright spotlight lately, with its price nearly reaching US$50,000. However, its fellow cryptocurrencies, the altcoins, are experiencing the opposite, with its market reportedly plunging.
Bitcoin is doing exceptional, with all the attention it has been getting. Not to mention Tesla CEO Elon Musk’s recent show of support. However, despite the attention, it appears that altcoins aren’t doing as well.
Price of #Bitcoin on Valentine’s Day:
— Documenting Bitcoin 📄 (@DocumentingBTC) February 14, 2021
The two extreme digital market outcome
As it turns out, because of Bitcoin’s rising success, the selling pressure for the altcoins has heightened. Naturally, with all the volume in the digital market right now sharply favoring Bitcoin, there’s little attention left for the others.
Another notable observation made was Etherium’s (ETH) fall against Bitcoin. ETH’s fall is worth mention as this cryptocurrency usually leads the market. If ETH can’t stand against Bitcoin, we can only assume the same for the others.
For Bitcoin’s success, CNN Business notes that “investors have sent the price of bitcoin skyrocketing.” As many know, the number of BTC is limited; when supply runs out, it will continue to immensely increase.
We have moguls, such as Elon Musk, to thank for most, especially when he announced that Tesla would soon accept digital currency as payment for its premium vehicles.
Jay Z and Twitter CEO Jack Dorsey have also shown their support for Bitcoin after pairing up to establish a bitcoin development fund.
Normally this pattern seems bearish. But I think, this is another trap for the short term traders.
— Altcoin Global (@BtcAltolog) February 14, 2021
Altcoins experience rough patches, but shakeout expected
Meanwhile, various reports over the past months show some of the altcoins experiencing quite the plunge. Last December, XRP plunged sharply, falling over 17%, after the SEC suit against Ripple broke out.
Like a domino effect, NewsBTC reveals that ETH plunged under $600 after the XRP crash.
Nonetheless, an imminent shakeout is expected to happen, according to crypto traders. Pseudonymous crypto trader Capo reportedly believes that “altcoins will witness a large inflow of capital.”
But, this will happen only after a significant pullback—which is what is happening to right them right now.
This. But first a shakeout imo. https://t.co/IszV4uRRia
— il Capo Of Ethereum (@CryptoCapo_) February 9, 2021
Bitcoin’s great dominance in the market right now is reportedly deemed as helpful for altcoins. Per Cointelegraph:
“If Bitcoin sees another breakout, this time, the altcoin market is likely to rally in tandem with Bitcoin after seeing an initial dip on BTC’s first impulse rally.”
Meanwhile, crypto traders have their own bets on altcoins that are worth keeping an eye on. Capo is noting Syntropy (NOIA) while Altcoin Daily host Austin Arnold tells his audience to keep an eye on Uniswap (UNI).
Featured image courtesy of Worldspectrum/Pexels