Do you ever wonder why altcoins decrease in value with bitcoin price going down? $BTC $ETH $BNB

There are many reasons why altcoins loose value more dramatically than Bitcoin when the market fluctuates but let me tell you 3 of them:

1. Risk Aversion: Bitcoin is the first and most established cryptocurrency, and it is often seen as a safer bet by investors. During periods of uncertainty and market downtrends, investors tend to buy Bitcoin, pulling their money out of altcoins which are perceived as riskier. This shift in investment cause altcoin prices to plummet.

2. FOMO (Fear Of Missing Out): When Bitcoin's price surges, some investors tempt to jump on the bandwagon, hoping to capture some profits. This leads them to selling their altcoin holdings to buy Bitcoin, further pressuring altcoin prices downward.

3. Bitcoin Dominance: The total market capitalization of Bitcoin compared to the entire crypto market means Bitcoin dominance. When Bitcoin dominance increases, it signifies that investors are putting more money into Bitcoin relative to altcoins. This leads to decrease in altcoin valuations.

#CryptoWatchMay2024 #BTC #ETHETFS #MicroStrategy #Write2Earn

Worst month since 2022 bear market? 5 things to know in Bitcoin this week

Bitcoin $BTC heads into the April monthly close on an uncertain footing as BTC price action falls to 10-day lows.

The largest cryptocurrency continues to tread water beneath significant resistance levels after a week of sustained selling during Wall Street trading hours.

The April candle close has just days left to avoid becoming Bitcoin’s worst month of 2024 so far.

The immediate landscape remains problematic — seller interest between the spot price and new all-time highs is considerable, and while price discovery is only around $12,000 away, such levels seem firmly out of reach.

The weekly close provided little respite for battered Bitcoin traders as BTC/USD continued dropping into the Asia session.

Hitting lows of $61,943 on Bitstamp, per data from Cointelegraph Markets Pro and TradingView, the pair thus saw its lowest levels since April 19.

The week prior, relief bounces toward $65,000 had repeatedly encountered selling pressure around the Wall Street open which commentators including popular trader Skew attributed to U.S. automated trading algorithms.

“I do see the potential for longer crab between $67K - $58K till proper flow supported breakout,” he continued in fresh analysis on X on April 29.

Bears have so far failed to keep the market below $60,000 for long. Even at current levels around $62,000, however, April is on track to deliver more than 12% losses.

Data from monitoring resource CoinGlass confirms that this would make it Bitcoin’s worst-performing month since November 2022 — the height of the latest bear market.

Skew continued that wherever it ends up, the monthly close would form a key new BTC price focus in its own right.

“1M close is in 2days roughly, following that close monthly & weekly open will act as very pivotal levels,” he wrote, describing one-month timeframes as “not bad at all” and reiterating the significance of $58,000 as support.

#Bitcoin #BinanceLaunchpool #Megadrop #Crypto #Share2Earn

Altcoins in ‘Last Exit Pump’ Against Bitcoin Before Final Capitulation, Warns Top Analyst – Here’s the Timeline

A widely followed crypto analyst is issuing a warning that the altcoin market is about to implode against Bitcoin $BTC

In a new video update, crypto strategist Benjamin Cowen tells his 800,000 YouTube subscribers that the TOTAL3 chart, which tracks the market capitalization of all altcoins minus Ethereum (ETH) and stablecoins, looks bearish against Bitcoin.

According to Cowen, the weakness of altcoins against Bitcoin suggests that alts may witness a collapse in the coming weeks.

“A majority of the altcoins are still putting in new lows on their Bitcoin pairs and to find ones that are not, you’d have to cherry-pick ones in the top 20 that are not or they’re on their way to new lows right now or you’d have to find a micro-cap that was created recently and show that one that’s not putting in new lows.

I think what you’re witnessing right now is the last exit pump of alt/Bitcoin pairs before we see final capitulation of alt/Bitcoin pairs as we go into May and June. That is what I think.”

The analyst says a TOTAL3/Bitcoin pattern that played out in 2019 may be repeating itself in the current cycle.

“This is a very similar pattern we saw last cycle where after setting a low here [in May 2019], we then had one final bounce [in June 2019] that ultimately faded just below the bull market support band and then it rolled over into the summer.

And a lot of times you will see alt/Bitcoin pairs capitulate in the summertime because a lot of people aren’t as glued to their computers as they are during the fall and the spring and the winter. During the summertime, people focus on other things a lot of times, and so the collective bid for the altcoin market can often dry up.

I don’t think there’s going to be any mercy in another rally. I think it’ll just lead you into the final capitulation, going back to 25% of Bitcoin’s market cap.”

Source: Benjamin Cowen/YouTube

#BinanceLaunchpool #Megadrop #Write2Earn #bitcoinhalving

Bitcoin could face mass selling pressure in response to DTCC’s latest notice

The DTCC issued an important notice announcing 100% haircut for ETFs and investment vehicles that include Bitcoin $BTC

No collateral value meaning the financial services company will provide no loans against investments in ETFs, Bitcoin.

Crypto expert says Bitcoin could face selling pressure if small banks facilitating investments in ETFs drop their holdings. 

The Depository Trust and Clearing Corporation (DTCC) is a US financial services company that provides clearing and settlement services. The DTCC issued a notice on Friday, April 26, informing all participants that ETF or investment vehicle that includes Bitcoin or any other cryptocurrency will be subject to a 100% haircut. 

The DTCC’s notice states that no collateral value will be given for ETF or other vehicles that include Bitcoin or other cryptocurrencies as an underlying investment and they will be subject a 100% haircut. This means the financial services company will extend no loans on these investments. 

Crypto analyst behind the X handle KO_Kryptowaluty says that the notice applies only to the inter-entity settlement in the Line of Credit (LOC) system. The system serves as a tool that meets market participants' liquidity requirements. 

ETFs can still find their role in lending and as a collateral in brokerage activities subject to the risk tolerance of individual brokers. 

Crypto analyst @HodlMagoo says that there might be a liquidity issue “around the corner.” In a video, the analyst behind the X handle @OTC_Bitcoin explains that the DTCC’s move could result in banks that support ETFs and cryptocurrencies selling their holdings or reducing exposure for corporate bonds, rated B1 to B3 or other securities. 

Bitcoin price is $62,933 at the time of writing and the price wiped out 1.31% of its value in the past day. Legendary trader Peter Brandt recently shared his thesis on Bitcoin’s Exponential Decay and stated that it is likely that the cycle top is in. 

#Write2earn #BTC #BTChalving