Altcoin
Warning for analysts: Bitcoin’s ATH collapse could overshadow the altcoin market
The Bitcoin market continues to dance around the $70,000 level. While we’re trying to decide where we’re going next. Famous cryptocurrency trader “Crypto Tony” has shared a crucial piece of advice for the crypto community.
As Bitcoin approaches its all-time high (ATH), Tony warns that this milestone could momentarily shift investor attention back to Bitcoin, potentially slowing down altcoins in the short term.
Bitcoin To breaks the ATH
Bitcoin’s performance often dictates trends in the broader cryptocurrency market. With Bitcoin price close to its maximum, there is a growing expectation of renewed investor interest and capital flow into BTC. Yesterday, spot Bitcoin ETFs saw a total net inflow of $154 million. Notably, the Grayscale Bitcoin Trust ETF (GBTC) recorded an outflow of $16.0914 million.
Additionally, BlackRock’s iShares Bitcoin Trust (IBIT) saw a single-day inflow of $91.9527 million, 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’s dominance is expected to increase, currently oscillates at 54.12%, reflecting a slight decrease in sentiment. This attention could temporarily overshadow altcoins, leading to potential setbacks for the growth of digital assets as attention shifts back to Bitcoin.
Caution is advised for Altcoins
Crypto Tony’s tweet highlights the need for caution among altcoins investors during this period. Historically, significant movements in the price of Bitcoin can create volatility in the altcoin market. As Bitcoin gains more and more attention, altcoins may experience a decline in buying pressure and price corrections.
Bitcoin aims for $150,000
Adding to the anticipation, Geoff Kendrick, head of EM FX research at Standard Chartered, offers a bullish forecast for Bitcoin. Kendrick expects a breakout of the previous ATH, predicting Bitcoin’s 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 repeats his bullish prediction, predicting Bitcoin will reach $150,000 by 2024 and a staggering $200,000 by 2025.
While Bitcoin’s rise may have a temporary impact on altcoins, maintaining a balanced perspective and strategy can help weather these fluctuations.