Altcoins Under Pressure
The crypto market has been recovering but the difference is not very obvious because of the poor performance in the altcoins. The reason why the Bitcoin domination and the increase in the total crypto market capitulation might be limited to the performance of Bitcoin over the last two years.
Bitcoin has several reasons to rise whereas altcoins are suffering from a lack of strong and sustainable narratives to fuel their economy.
1- The spot Bitcoin ETFs push the price up with the positive atmosphere.
2- The U.S. national Debt is a reason why people value limited supply assets
3- The cuts in the interest rates showed its inevitable impact on the markets
4- The uptrend in the global markets
5- The strong performance of NVIDIA and other technology companies
6- The Bitcoin-embracing approach of Trump and Elon Musk
7- The shift in the SEC; Gary Gensler's farewell
The list can be extended but all of them show us something clear that the hype / attention / flow of money will be only on Bitcoin until the alts can build some strong fundamentals.
There is no need to discuss why we have thousands of altcoins or in what ways they contribute to the growth of our ecosystem. Even if they have no utility like memecoins, they can reach a certain level of valuation if they can convince a group of investors or whales to buy their tokens.
The shorts on Ethereum directly mean the pressure on all altcoins!
Though there are a couple of outperforming coins in the market, the majority focuses on the performance of Ethereum and the certain levels gained in ETHBTC chart. Though 0.05 was thought to be the bottom for ETH/BTC, we may see the ratio go even lower in time.
Until the day comes when the whales permit the coins to rise, the paradigm is based on the expected $100K test in Bitcoin and the shift of money from that moment to altcoins.
What do you think about the current state of altcoins?
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