Bitcoin is under pressure as the coin started going down right after the Tesla $1.5 billion investment and the news of Twitter considering to hold the cryptocurrency. Bitcoin has the reasons to surge higher but it seems that the smaller-cap altcoins are surging which only lowers the BTC dominance on the market as we can see in our latest Bitcoin news.
The BTC/USD exchange rate corrected right after hitting the record high of $42,000 as it pointed to a spike in a profit-taking sentiment among daytraders. The pair was down by 8.5% from the local top but it did sustain its long-term bullish bias. The correction in price coincided with the drop in the BTC Dominance index which calculates the BTC market share against the entire cryptocurrency market which includes large-cap digital assets such as XRP, Binance coin, Cardano, and Ethereum. The index was set at 64.76 on Tuesday and turned lower to 61.48 percent on Thursday as bitcoin is under pressure still.
The reasons were visible in the altcoin market performance as well since Cardano’s blockchain native token ADA increased by 23% against BTC. Polkadot’s DOT increased as well by 9%. In the meantime, AVAX jumped higher by 118%. The altcoin market added another $79.5 billion over the past week to push the crypto market value above $1.4 trillion. BTC lost about $77 billion from the local top as per the data which initially recorded the market cap at $897.9 billion. This reflects a higher degree of portfolio reshuffling on the market. Bitcoin has a history of undergoing plenty of corrections and in many instances in the past, traders moved their capital out of the cryptocurrency. They put them in oversold rivals which are leading the current altseason. Once altcoins reach their peaks, traders flocked back to the market and resume the rally.
The rally on the altcoin market concerns projects that are direct rivals to Etheruem. The fees on Ethereum increased dramatically following the bull run and this pushed plenty of speculators out of the ETH markets to bet on its rivals like Matic, Celo, and Avalanche. The cost to buy one ETH token dropped to 6.58% from the record high of $1839. Ethereum fees have to come down in order to reduce the speculation on the markets.
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