Altcoins Shine Amidst Bitcoin’s Downturn : oifdskn fdskloewfio dslk;lfdsopi vuxopvx

Bitcoin experienced a significant downturn on Tuesday, dropping by as much as 5.7%, marking its largest one-day decline in two weeks. This selling pressure extended to other cryptocurrencies and risk assets, including stocks.

As of the latest data, Bitcoin’s price is down 4.2% to $64,550, reaching a two-week low of $63,555, while Ether also fell by 4.4% to $3,355.

Despite this recent setback, Bitcoin still boasts a 52% gain for the year so far, driven in part by increased investor interest in U.S. exchange-traded funds backed by spot bitcoin.

The price surge to nearly $74,000 last Thursday triggered profit-taking activities, coupled with indications from U.S. data releases suggesting that the Federal Reserve may not implement as many interest rate cuts this year as previously anticipated.

Over the past week, Bitcoin has seen a nearly 9% decline, marking its most significant weekly drop since last September. Ether also experienced a 13% loss following an upgrade to the underlying Ethereum network.

However, the broader crypto market has not exhibited the same level of weakness.

Altcoins, often referred to as “altcoins,” have attracted their own inflows. For instance, the Solana network’s SOL token has surged by 19% in the latest week, while Avalanche’s AVAX coin has risen by 17%, according to data from Coingecko.

Analysts at exchange Bitfinex anticipate a period of market recalibration amidst Bitcoin’s recent correction and unprecedented inflows into spot bitcoin ETFs.

The flow of capital into the top 10 largest bitcoin ETFs has slowed in recent days. According to data from LSEG, $178 billion flowed into these major ETFs on Monday, a notable decrease from the well over $400 billion seen on several days last week.

Published

Leave a comment

Your email address will not be published. Required fields are marked *