HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Unprecedented Bitcoin Rally Leads Altcoins Into “Uncharted Territory”

Altcoins 2021/01/08 21:00 by Tony Spilotro

The shocking Bitcoin rally has resulted in the cryptocurrency reaching two times its previous all-time high. Meanwhile, most altcoins have yet to return to the high they set years ago. This strange occurrence recently with altcoins growing in USD value, but getting hammered on BTC pairs has led the market into “uncharted territory,” according to one crypto analyst.

Will Bitcoin continue to completely dominate altcoins from here on out, or will a proper altcoin season arrive where the rest of the asset class beats out BTC by a wide margin?

The Bitcoin Bull Run That Left Altcoins Behind

All eyes are on Bitcoin, stretching from Wall Street to Main Street, and even the government and banks are finally paying attention. Hard-coded rarity is causing a supply shock and letting the cryptocurrency soar to new highs with relative ease.

No one is selling BTC, only buying. The investor fever and flying high prices have caused many to turn to cheaper cryptocurrency altcoin alternatives, like Ethereum, Chainlink, and Litecoin.

Related Reading | Bitcoin Dominance Doji: Why 2021 Could Spell Doom For Altcoins

These assets have also been rocketing in USD value, but these altcoins on their BTC pairs tell a very different story.

On USD pairs of major altcoins, an uptrend and price appreciation is visible. However, on BTC trading pairs, each asset continues to grind towards new lows.

In the past, once Bitcoin broke its former all-time high, an altcoin season caused the crypto class to beat out BTC by a substantial amount. But history has yet to repeat during this cycle as is evident in the Bitcoin dominance chart below.

bitcoin dominance uncharted altcoins

Things are not at all playing out like they did the last time around in crypto | Source: CRYPTOCAP-BTC on TradingView.com

The current altcoin uptrend is nothing like what has been witnessed in the past in crypto. One crypto analyst paying close attention to this strange divergence between the closely related crypto assets says that this is “uncharted territory” for the market.

But what exactly could this mean? Bitcoin so heavily outperforming everything else could be due to institutions only focusing on the top cryptocurrency during this cycle. This wealth class is looking to BTC to offset the risk of inflation, meanwhile, altcoins only present added risk considering their history and limited use case sans a few outliers.

Related Reading | Analyst: Post Bitcoin, Traditional Finance Will Flock To DeFi, Not Ethereum

Ethereum has the green light from regulators and will be among the few coins with long-term value. DeFi that’s built on ETH’s back, will also do well. But what do altcoins from the past cycle that have done little to bring a working product to the market have to offer institutional money this time around?

Retail investors who bought altcoins during the last bull run are still at a loss. So who exactly is buying altcoins? And is it enough to reach new highs?

Featured image from Deposit Photos, Charts from TradingView.com

0 Like(s)



You should also read...

Altcoins 26/05/20 19:30 by Tony Spilotro
Ethereum Chart Makes It Clear: Altcoin Season Is Already Over
All throughout the crypto market, small-cap altcoins going on massive rallies brought back the return of talk about an impending altcoin season. However, a pair of coinciding sell signals triggering o...
Read More
Altcoins 03/08/20 12:00 by Nick Chong
XRP Could Crash 50% as Price Undergoes Critical Rejection: Analyst
Last week, analysts thought XRP was on the verge of a massive breakout. Against the dollar and against Bitcoin, the leading altcoin saw an explosive breakout that reminded some of the start of the inf...
Read More
Other 05/08/20 12:00 by Nick Chong
After Ripping Past $3, Analysts Think Tezos (XTZ) Has Room to Rally
Like Chainlink and other altcoins, Tezos (XTZ) has done extremely well over recent days despite the weekend’s flash crash. On Tuesday, the popular cryptocurrency was up more than 9% on the day a...
Read More
Altcoins 10/08/20 12:28 by Brenda Ngari
Why Popular On-Chain Analyst Expects Bitcoin To Annihilate Altcoins In Coming Weeks
Altcoins have been on fire in recent months. Many alts have, in fact, significantly outperformed the No. 1 cryptocurrency as they rocketed to new all-time highs. One such token is decentralized oracl...
Read More
Other 19/08/20 23:00 by Cole Petersen
Tezos (XTZ) May Plunge Towards $3.00 as Selling Pressure Ramps Up
Tezos’ price action over the past week has primarily favored sellers, with buyers being unable to catalyze any strong uptrend while also being unable to guard against today’s market-wide selloff. ...
Read More