The last couple of hours and days by extension, have seen Bitcoin record massive gains. As we reported, Bitcoin on Thursday got above $6,100, a position it has remained below for nearly 6 months.
In recent months, Bitcoin swings have influenced altcoin price movement. In fact, at most times, altcoins have gone on to outperform Bitcoin despite the crypto leader having set the trend. This trend has however changed considerably. In the last couple of weeks, Bitcoin has been very bullish but altcoins have seemed to continue taking substantial dips.
For those who have decided to remain invested in altcoins, they continue to suffer dips despite Bitcoin being bullish. However, given Bitcoin’s current dominance level, more and more investors have dumped altcoins for Bitcoin. This in itself is very good for Bitcoin but continues to hurt the market at large.
Is The Altseason Over?
Historically, altcoins have been deemed more volatile than Bitcoin. This has hence seen traders choose to hold altcoins during wide market rallies, betting that they would go through more dramatic positive changes.
But during bearish momentum, the investors have dumped altcoins for Bitcoin since they fall as dramatically as they rise. When Bitcoin was trading below $4,500, this seemed to be the pattern. This period had been characterized as the ‘altseason’ and altcoins were always recording extreme growth compared to Bitcoin.
A few weeks ago we asked the all-important question, is the altseason over? According to most cited analysts, yes. Mati Greenspan, senior market analyst for eToro had stated:
“Altseason is over and the market is now consolidating back into Bitcoin,”
We have also reported in the last couple of days that crypto venture capital firm Heisenberg Capital believes that Bitcoin will kill altcoins. According to the firm, which was co-founded by Bitcoin enthusiast Max Keiser, as Bitcoin approached the $100,000 asking price, it will kill altcoins.
Although this prediction looks very unlikely, given how fundamental some cryptocurrencies are, it seems there is some truth to it. Projects will need to step up on their developments and ensure they can inspire their respective rallies if they are to keep up with Bitcoin.