Cryptocurrency Market Overview
Saturday, April 13, 2024
Bitcoin fluctuated within the range of $65,000 to $71,000 over the past day.
The market capitalization fell to $2.39 trillion; the dominance index rose to 55.69%, reaching peaks above 56% at times. This is the highest since April 2021.
The fear index is at 72.
Stock markets declined yesterday. The S&P 500 closed down 1.46%, the dollar index rose to 105.8, and the yield on 10-year bonds is at 4.51%.
Markets were once again spooked by the potential for war between Iran and Israel (they were first frightened a few days ago). An Iranian strike is expected as retaliation for Israel's attack on the Iranian embassy in Syria. It would be logical for Iran to strike on a Saturday, and the US has disseminated information that Iran may soon act, causing the markets to tumble.
In the stock market, the decline was within the bounds of a minor correction. Bitcoin also stayed within its range. However, altcoins truly took a hit, with top altcoins losing between 18% to 25%. The biggest drops were in CORE, W, CFX, RUNE, TIA. SOL also saw a significant decline. Liquidations on the market reached $930 million.
Bitcoin's dominance index has risen to a two-year high. I liked Bitcoin's resilience in this situation. It never dropped below $65,000, remaining in the same range it has been since the end of February. This suggests that the influence of the market crowd on Bitcoin's price formation is diminishing.
What's Next?
I think that some form of retaliation from Iran will happen (though not necessarily right now), but a major Iran-Israel war is unlikely at this point.
The market will begin to recover at the start of the week. Those who buy altcoins now at a 15-25% discount will earn a quick profit even in the short term. Those who wait for a cheaper price will miss out on opportunities again. Those who open a short will suffer.