Altcoins
Altcoins in free fall, Bitcoin maintains its strength
12.25pm ▪ 3 min read ▪ by Luc Jose A.
Bitcoin’s dominance in the cryptocurrency market is strengthening, while altcoins are experiencing a worrying free fall. A situation that reminds investors of the volatility and fluctuating dynamics of the cryptocurrency market.
Bitcoin’s supremacy in the cryptocurrency market
In July, the Altcoin Season Index (ASI), which measures the relative performance of altcoins compared to Bitcoin, it briefly flirted with the promising 46 mark. Investors were already anticipating an altcoin season with this growth. However, this index has since dropped significantly to 24.
This drop of over 47% from its peak indicates that the market is once again favoring Bitcoin. The altcoin season is still far from over. Despite the brief periods of relief seen earlier this year, BTC registered an impressive 20.4% increase in the last two weeks.
On the other hand, Ether has only increased by 16.2% over the same period. The scheduled listing of Ether spot ETFs on July 23 could have been a turning point for ETH and other cryptocurrencies. However, the impact on the market has been modest. Bitcoin continues to outperform them.
Altcoins struggle to find their momentum
The last significant altcoin season occurred during the 2021 bull run. Since then, these cryptocurrencies have struggled to maintain consistent gains against Bitcoin. The collapse of major entities such as FTX and Terra/LUNA in 2022 has strengthened BTC’s dominance.
Additionally, the valuation of smart contract cryptocurrencies has decreased by 0.1% over the past 24 hours. It is currently valued at $724.05 billion. This decline illustrates the challenges altcoins face in gaining traction.
Bitcoin’s continued dominance suggests investors may have to wait longer for an altcoin-led resurgence. Recent innovations in the cryptocurrency market, including Ether ETFs, have yet to translate into a Significant momentum for altcoinsAs long as the ASI score remains below 75, Bitcoin continues to be the preferred choice for investors.
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Luke Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, convey the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.