After a sharp profit booking, Bitcoin reclaimed $70,000 mark during the early Asian hours on Tuesday as the largest crypto token rose more than 5 per cent. The resurgence in Bitcoin pushed other crypto tokens altcoins higher during the early days.
Recently, Bitcoin has been hogging limelight and scaled new peaks, delivering multibagger returns to the investors after the approval of Bitcoin ETFs, renewed institutional interest and its much-anticipated Bitcoin halving event line-up soon. However, the recent bout of profit booking pushed the prices around the $60,000 mark.
Bitcoin rose 5.35 per cent to $70,850-level, as per data suggested by Coinmarket cap. The market capitalization of the oldest crypto currently stood at $1.39 trillion mark with its dominance inching one-fourth a per cent to 51.90 per cent in the entire crypto market cap.
The global market capitalization of the crypto space increased about 4.7 per cent to $2.67 trillion in the last 24 hours. The total crypto market volume registered a jump of more than 40.8 per cent to $112.11 billion over the last 24 hours.
The recent outflows marked the end of a 7-week cycle of inflows, largely attributed to hesitancy from investors due to the price correction. The large outflows witnessed by the spot Bitcoin ETFs last week were probably driven by bankrupt lender Genesis selling GBTC shares. This recovery suggests renewed confidence in Bitcoin despite recent market fluctuations, said - Rajagopal Menon, VP, WazirX
"The recent surge in Bitcoin's age consumed metric indicates a significant uptick in dormant Bitcoin addresses moving coins. This surge suggests a revival in network activity, accompanied by increased transaction volume. As Bitcoin's Age Consumed metric grows, transaction volume tends to rise, potentially signaling an imminent price surge," he said
Age Consumed is a metric gaining prominence in cryptocurrency analysis which provides valuable insights into Bitcoin's activity and sentiment. It tracks the movement of previously dormant addresses, reflecting the extent to which long-held coins are being transferred.
"Despite Bitcoin's dominance in the market, there's speculation of an upcoming altcoin season. Altcoins have seen net inflows, with notable performers like Polkadot, Avalanche, and Litecoin. While Bitcoin has experienced moderate gains, certain altcoins have outperformed it over the past week," Menon added.
Bitcoin's rally pushed other altcoins higher. Among the top 20 altcoins, Ethereum, Solana, Dogecoin, Cardano, Avalanche, Shina Inu and Chainlink rose 4-6 per cent each. Among other names, Fetch.ai, Bonk, Internet Computer, Pepe, Arweave and Near Protocol rose 10-15 per cent in the last 24 hours.
The market looks upbeat and Bitcoin prices are rallying again after a 10-day slump. Bitcoin reclaiming the $70,000 level indicates the market’s readiness to push for another new highs before the halving, in 25 days, said Vikram Subburaj, CEO at Giottus Crypto Platform, who sees the US Fed's willingness to accommodate higher inflation over a slightly extended period as a key factor.
"As industry observers wait for price discovery and new highs, we can also see an uptick in other assets like Ethereum, Solana and Avalanche. As usual, the spike in BTC prices will have a cascading effect on the ecosystem and we hope to see a good run in the next few weeks," he added.
Bitcoin has rallied back with roughly 25 days to go before the next Bitcoin halving. The halving events have typically been followed by sustained bull run both in bitcoin as well as altcoin prices, which have typically been multi-year runs, said Kumar Gaurav, Founder & CEO of Cashaa.
"While past performances in the financial world don’t always predict the future, the sustained rally we have already seen in the bitcoin prices this year could signal good times ahead for the biggest cryptocurrency," he said.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
FAQs
During periods when Bitcoin's price is stable or rising and its market dominance begins to wane, it often signals the onset of what is known as an altcoin season. This phenomenon is marked by a significant number of altcoins outperforming Bitcoin.
How does Bitcoin price affect altcoins? ›
When bitcoin (BTC), the largest cryptocurrency by market cap, goes up, other digital tokens tend to increase in value as well. When BTC declines, it's likely that other players in the space will drop at the same time.
How long will it take Bitcoin to recover? ›
That said, Bitcoin didn't actually take that long to recover from its post-FTX crash — by mid-January 2023, it had already returned to its pre-crash price. Since then, the cryptocurrency has experienced one of its most promising periods since its inception, including a new high in March 2024.
When should you pull out of Bitcoin? ›
One of the first signs to look out for is if there is any negative news regarding the coin you've invested in. Any negative PR from the corporate side, top management, or even the founder could instantly bring down the value of your coin.
Will altcoins outperform Bitcoin? ›
As the crypto market gears up for the next bull run, a handful of altcoins are ready to surge past Bitcoin. These promising tokens are generating buzz and catching the eye of investors. Discover which cryptocurrencies are poised for explosive growth and could potentially outperform the market leader in the near future.
Is BTC dominance good for alts? ›
Generally speaking, Bitcoin is the most dominant cryptocurrency, followed by Ethereum and other altcoins. However, certain altcoins have been able to outpace Bitcoin in terms of market capitalization, such as Ethereum. When Bitcoin dominance increases, altcoins are usually stagnant.
Do altcoins pump after Bitcoin? ›
Generally, yes. The price of most altcoins is highly correlated with the price of Bitcoin. It is Bitcoin dominance, however, that indicates when Altseason is beginning.
Why altcoins go down when Bitcoin goes up? ›
The crypto market also tends to follow a natural cycle. When it's in a bear market – like right now – bitcoin soaks up a lot of the altcoins as investors favor bitcoin's relative price stability. Then at the start of crypto bull markets, investors tend to field their most experienced player first (i.e. bitcoin).
How will Bitcoin halving affect altcoins? ›
Negative Effect: If the fluctuations in the Halving event are too sharp and unstable, this might cause investors to become more cautious and wary in trading other cryptocurrencies. Meanwhile, if the trades in bitcoin are also relatively good, the focus might just be on bitcoin and altcoins might suffer in return.
What will $1000 of Bitcoin be worth in 2030? ›
If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.
Bitcoin Overview
Our most recent Bitcoin price forecast indicates that its value will increase by 16.91% and reach $65,152 by September 13, 2024. Our technical indicators signal about the Bearish Bullish 28% market sentiment on Bitcoin, while the Fear & Greed Index is displaying a score of 37 (Fear).
How much will 1 Bitcoin be worth in 2025? ›
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 62,518.99 |
| 2026 | $ 65,644.94 |
| 2027 | $ 68,927.18 |
| 2030 | $ 79,791.83 |
1 more rowReasons for cashing out crypto or Bitcoin
The decision whether to cash out crypto or Bitcoin depends on your financial goals and market conditions. You may want to lock in gains, cut or harvest losses for taxes, or simply use your digital assets in the real world.
Should I hold or sell Bitcoin? ›
While the crypto market's volatility can make it difficult to know when to sell Bitcoin, historically the market has rewarded the patient and those who think long-term. Holding Bitcoin for over a year before selling can also save US taxpayers money on their tax bill.
Is it safe to leave money in Bitcoin? ›
Although investing through the major cryptocurrency exchanges is relatively safe (and you can protect yourself by using safe digital practices and a cold wallet), cryptocurrency is a risky asset class. Only invest as much as you can afford to lose.
What happens to Bitcoin during alt season? ›
Altcoin season is a crypto market phase where altcoins, or non-Bitcoin cryptos, a surge in value, often surpassing Bitcoin's performance. Factors like heightened investor interest in altcoins, unique altcoin project developments, or overall bullish market sentiment can trigger this growth.
What does alt season mean in crypto? ›
Altseason is a brief period where money flows out of Bitcoin & into altcoins, resulting in a significant & rapid price increase for the majority of cryptocurrencies.
Do alt coins follow Bitcoin? ›
Many altcoin prices follow Bitcoin's because it is the cryptocurrency that sets the standard and pace. Litecoin, ether, dogecoin, and many others have trends that mimic Bitcoin.
Is it a good time to buy alt coins? ›
There is no best time to buy or sell alternative currencies. No one can correctly forecast the length of an altcoin season due to the volatility of the cryptocurrency markets. Instead, you should always do your own research (DYOR) about the altcoins that you are interested in.
