A cryptocurrency expert has provided insights into recent developments concerning Bitcoin‘s (BTC) position in the crypto industry, implying that investors might be exploring alternatives to broaden their portfolio holdings and reduce their reliance on Bitcoin.
Bitcoin Dominance Is Waning
On Monday, April 22nd, well-known crypto expert Michael van de Poppe used X (previously known as Twitter) to impart significant knowledge about Bitcoin’s market position and the feelings of investors regarding Bitcoin after the halving occasion.
On the morning of April 20th, there was a significant event called the halving. During this time, the rewards given to miners for verifying transactions were sliced in half. As a result, the total amount of cryptocurrency that can be created was decreased. This long-awaited occurrence had ignited great anticipation among crypto fans and investors. Analysts in the market believed that this development could lead to a surge in prices, generating a bull run.
Despite the expectation of a significant price increase following the fourth Bitcoin halving cycle, the outcome fell short. This is evident when we consider the modest impact on BTC‘s price compared to its dramatic surge to record-breaking highs just before the halving, which saw Bitcoin soaring above $75,000 in March. The frenzy was driven by the growing popularity of Spot Bitcoin Exchange Traded Funds (ETFs), leading to heightened demand.
Currently, CoinMarketCap reports that the cryptocurrency is priced at $66,205 – a significant drop of over $8,000 from its past record high.
After the Bitcoin halving, according to Poppe’s analysis, the overall cryptocurrency market has been rising. However, he noted that Bitcoin’s influence in the crypto market was noticeably declining. Based on TradingView’s figures, Bitcoin presently controls 55.29% of the total market capitalization, representing a decrease of 0.26% compared to the previous week.
The decrease in Bitcoin’s prominence indicates that some investors might be considering shifting their resources towards less popular digital currencies as part of a diversification strategy. Poppe described this trend as a “gradual rotation,” implying a steady and potentially growing trend.
Acrypto expert showed us a Bitcoin-Tether (USDT) price graph, covering the time frame from February to April. According to his analysis, if Bitcoin can’t surpass $70,300, it may find support at approximately $57,000.
Altcoin Season On The Horizon?
An altcoin rally is a common occurrence when less-known cryptocurrencies experience substantial price growth, surpassing Bitcoin’s performance during this time. This trend typically emerges after Bitcoin’s influence over the crypto market diminishes significantly.
“If Bitcoin’s influence keeps decreasing, as indicated by its dominance index, we might experience another surge in interest for altcoins among investors,” the crypto community member suggested.
Additionally, Poppe has expressed his belief that the time for alternative coins is approaching. He plans to invest long-term in preparation for this possible surge, indicating that Ethereum‘s market behavior and the potential approval of an Ethereum Spot Exchange Traded Fund are significant factors influencing an altcoin bull market.
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2024-04-23 17:11