Altcoins
Altcoins in free fall, Bitcoin holds firm
Mar 23 Jul 2024 ▪ 3 min read ▪ by Luc Jose A.
Bitcoin’s dominance in the cryptocurrency market is strengthening, while altcoins are experiencing a worrying freefall. 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, briefly flirted with the promising threshold of 46. Investors were already anticipating an altcoin season with this rise. However, this index has since dropped significantly to 24.
This drop of more than 47% from its peak indicates that the market is favoring Bitcoin again. The altcoin season is still far from over. Despite the brief periods of respite seen earlier this year, BTC checked in an impressive increase of 20.4% over the past two weeks.
In contrast, Ether has only increased by 16.2% over the same period. The planned listing of Ether spot ETFs on July 23 could have been a turning point for ETH and other cryptos. However, the impact on the market has been modest. Bitcoin continues to outperform them.
Altcoins struggle to find momentum
The last significant altcoin season was during the 2021 bull run. Since then, these coins have struggled to maintain consistent gains against Bitcoin. The collapse of major entities like FTX and Terra/LUNA in 2022 has solidified BTC’s dominance.
Additionally, the valuation of smart contract cryptocurrencies has decreased by 0.1% in the last 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 that 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 A major boost for altcoinsAs long as the ASI score remains below 75, Bitcoin continues to be the preferred choice for investors.
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Luc José 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 constantly 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 current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.