Altcoins
Analyst Warning: Bitcoin ATH Breakout Could Overshadow Altcoin Market
The Bitcoin market continues to dance around the $70,000 level. As we try to figure out where we go next. Prominent crypto trader “Crypto Tony” has shared a crucial tip for the crypto community.
As Bitcoin nears its all-time high (ATH), Tony warns that this step could momentarily shift investors’ attention to Bitcoin, which could set altcoins back in the short term.
Bitcoin To break the ATH
Bitcoin’s performance often dictates trends in the broader cryptocurrency market. With Bitcoin price close to its ATH, there is growing expectation of renewed investor interest and a flow of capital into BTC. Yesterday, spot Bitcoin ETFs saw a total net inflow of $154 million. Notably, the Grayscale Bitcoin Trust ETF (GBTC) saw an outflow of $16.0914 million.
Additionally, BlackRock’s iShares Bitcoin Trust (IBIT) saw an inflow of $91.9527 million in a single day, while Fidelity’s FBTC ETF saw an inflow of $74.572 million. Ark Invest’s ARKB also saw an inflow of $3 million on the same day.
Meanwhile, Bitcoin dominance is expected to increase, currently oscillating at 54.12%, reflecting a slight decrease in sentiment. This focus could temporarily overshadow altcoins, leading to potential setbacks for digital asset growth as attention turns to Bitcoin.
Caution advised for Altcoin
Crypto Tony’s tweet highlights the need to caution among altcoins investors during this period. Historically, large movements in the price of Bitcoin can create volatility in the altcoin market. As Bitcoin gains more attention, altcoins could experience a decline in buying pressure and price corrections.
Bitcoin targets $150,000
To add to the anticipation, Geoff Kendrick, head of EM FX research at Standard Chartered, offers a bullish forecast for Bitcoin. Kendrick predicts a breakout above the previous ATH, projecting Bitcoin price to rise to around $73,798.
Kendrick highlights the potential impact of Ethereum Spot ETF approved by the SEC on the price dynamics of Bitcoin. He reiterates his bullish prediction, forecasting Bitcoin to reach $150,000 by 2024 and a staggering $200,000 by 2025.
Although Bitcoin’s rise may have a temporary impact on altcoins, maintaining a balanced perspective and strategy can help manage these fluctuations.