Altcoin prices appear to be falling after Bitcoin hit above $ 49,000 yesterday. Of the roughly 96 DeFi assets listed on Messari, only 10 have shown positive movement in the past 24 hours. Why is this?
According to a report from CoinTelegraph, the Bitcoin rally that took place over the weekend may be partially responsible. When Bitcoin was above $ 49,000, the rally may have been driven in part by investors who pulled out of the altcoin markets in favor of BTC. In particular, the price of ETH also fell as Bitcoin advanced.
Money flows from alts….
I think it’s about bitcoin. pic.twitter.com/ELQbx25lSU
– Altcoin Psycho (@AltcoinPsycho) February 14, 2021
What’s next? According to CoinTelegraph, Bitcoin’s next steps could have a big impact on what happens to altcoins. If BTC rises and then consolidates, altcoins could see short-term benefits: “Altcoins tend to rise as BTC consolidates after an initial impulse rally,” the publication said.
“However, when BTC recovers or sees a slight decline, altcoins often see sharp price drops against both BTC and the US dollar,” the publication said – and it seems like BTC may be prepared for a rally.
Even with pullbacks, the altcoin market capitalization skyrockets
The buying pressure on Bitcoin dropped momentarily in the hours of Monday, February 15. However, as buying pressure seems to be mounting again, altcoins could be ready for further short-term slumps.
However, the declines appear to be a healthy part of a longer-term capital cycle flowing into the altcoin markets. Crypto YouTuber Quentin Francois, also known as “Young and Investing,” pointed out on Twitter on Friday that altcoin market cap “has now broken its previous ATH (sic),” a move he considers “perfect on the way.” “designated.
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“When this happened in the last cycle, altcoin market capitalization rose 320,000%,” he wrote.
Altcoin market cap follows the path perfectly. It has now broken its previous ATH. When this happened on the last cycle, the altcoin market cap rose 320,000% !! # crypto pic.twitter.com/7YJXzHCY32
– Young and investing (@QuintenFrancois) February 12, 2021
The pseudonymous trader @RektCapital also wrote on Twitter: “At this early stage in the altcoin market cycle, a major pullback would by no means be a bearish event. In fact, any pullback would enable future uptrends in an otherwise strong and healthy growth cycle. “
“We often talk about prices not rising in a straight line, but it’s difficult to make that statement for Altcoin Market Cap’s performance in 2021. Altcoin Market Cap has literally risen in a straight line for weeks and weeks . ” the dealer wrote.
We often talk about prices not rising in a straight line
However, it is difficult to make that statement for Altcoin Market Cap’s performance over the course of 2021
Altcoin Market Cap has literally been moving in a straight line for weeks # ALTSEASON pic.twitter.com/RcXBwaFS8f
– Rekt Capital (@rektcapital) February 14, 2021
Indeed, prices already appeared to be on the recovery path, although altcoin markets may have taken a hit over the weekend. In the past 24 hours, the total market cap for altcoin fell from $ 595 billion to $ 525 billion. At press time, the total market cap for altcoin had risen to $ 565 billion.