Introduction
As Bitcoin’s influence grows, altcoins are struggling to keep up. Many wonder if the days of big gains for altcoins are over. With Bitcoin pulling more attention, altcoins face tough challenges that are hard to ignore.
Discounts on Altcoins With Bitcoin Price Drop
After BTC’s price recently dropped, many altcoins followed with sharp declines hence, Prices of major altcoins fell between 10% and 30% in just one week. Ripple [XRP] dropped nearly 10% but stayed above $2. Cardano [ADA], however, saw a bigger drop, losing 18% and slipping below $1. Ethereum [ETH], on the other hand, held stronger, dropping just 6% while staying above $3,500. Interestingly, not all altcoins suffered. Hyperliquid [HYPE] jumped by 40%, and Pudgy Penguins [PENGU] rose a remarkable 425%. These exceptions show that some tokens can still thrive even when the market weakens.
Bitcoin Dominance and Altcoins
On-chain analyst Joao Wedson has warned traders to stay cautious with altcoins. According to him, Bitcoin’s dominance recently hit a bottom above 54%, and it’s likely to grow stronger in the coming weeks. When Bitcoin dominates, It often means that investors are gradually shifting their money out of altcoins and into BTC or stablecoins. Moreover, Wedson also noted that BTC’s dominant 90-day change had recently turned positive for the first time since last November’s altcoin rally. Consequently, this indicates that BTC is steadily gaining strength, which, in turn, could continue to keep altcoins under pressure.
Will Bitcoin and Altcoins Rebound?
The Altcoin Season Index, which tracks how well altcoins perform against Bitcoin, recently dropped to a monthly low of 47%. This shows that altcoins are losing momentum. While some see the current low prices as a chance to “buy the dip,” Wedson advises caution.
Source: Blockchaincenter – Altcoin Season Index
Altcoins like XRP and ADA have already seen major losses, and the overall market remains weak. A strong recovery might not come soon unless market conditions change dramatically.
What Could Change the Market?
The upcoming “Santa rally” could bring hope to altcoin investors, as the market sometimes sees a year-end boost. However, this is uncertain. A stronger recovery might only happen in 2025 if a new bullish trend takes hold.
VR Soldiers’ Thoughts
As the VR Soldiers, we view Bitcoin’s strong buy signals as a potential shift in market momentum that could overshadow the altcoin sector. With BTC showing robust confidence from moving averages, the focus seems to be firmly on the leading cryptocurrency. While exceptions like HYPE and PENGU demonstrate unique opportunities, the broader altcoin market faces increased pressure. Investors should tread carefully, keeping an eye on BTC’s movements and their impact. Always research thoroughly—this is not financial advice.
Source: Trading View Conclusion
Altcoins are facing an uphill battle as BTC’s dominance grows. While a few tokens show promise, the overall market for altcoins is under pressure. A recovery may happen in the future, but for now, caution is key. Watching BTC’s moves and market trends will be crucial for altcoin investors.
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