🚀 Bitcoin Approaches Historical Highs, Altcoin Market Loses Over $400 Billion! 😲
Recently, the price of Bitcoin has once again approached its historical high, and its market share is nearing 60%. However, unlike previous market cycles, altcoins have not surged alongside this rise.
Looking back, Bitcoin's last price peak was $69,000 in November 2021, when the total market capitalization of the entire cryptocurrency market surpassed $3 trillion. In March this year, when Bitcoin's price reached $73,738, the total market cap of the cryptocurrency market was only close to $2.7 trillion.
However, Bitcoin's current price is near the March peak, but the total market cap of cryptocurrencies is around $2.3 trillion, which means the altcoin market has fallen by about $400 billion.
So, why has there been such a change in total market capitalization? The main dragging factor is Ethereum. During the last bull market peak, Ethereum's market cap reached $570 billion, and it was close to $490 billion in March this year. But now, Ethereum's market cap is only $320.9 billion, and its price has failed to break the resistance level of $2,650, down 46% from its peak three years ago. Despite this, some traders still view the current slump as an opportunity to accumulate.
Moreover, apart from Ethereum, many high-market-cap altcoins have also performed poorly: Solana down 31%, XRP down 85%, DOGE down 76%, Toncoin down 39%, Cardano plummeted 88%. Polkadot and Shiba Inu fell sharply by 92% and 78%, respectively. The only altcoin close to its peak is Binance Coin (BNB), but it is still 16% away from its new high.
Although the market cap of stablecoins has grown from $120 billion at the end of 2021 to $177 billion now, the market cap of altcoins is still under pressure. Analyst James Check pointed out that the growth of stablecoins has actually made the situation for altcoins more severe.
Currently, Bitcoin's market share is approaching 60%, indicating that the market still lacks retail participation. However, institutional inflows into Bitcoin ETFs have surged, with over $2 billion flowing in over the past five trading days. Nevertheless, some analysts believe that the spring for altcoins may be coming soon.
💬 What do you think about the trend of Bitcoin and altcoins? Do you believe that after Bitcoin's market share breaks 60%, altcoins will experience a strong rebound at some point in the future?
