- Altcoins are currently lagging far behind Bitcoin – which is in fact showing the markets why it is king.
- The benchmark cryptocurrency’s rally has given other altcoins a tailwind, but they have yet to achieve the same momentum that BTC is currently enjoying.
- One trader writes about this in a tweet, stating that he now expects a rotation of capital out of bitcoin and into altcoins.
- He comments that there are already signs of this – including a sharp drop in Bitcoin overnight, giving way to an Ethereum rally.
Bitcoin has taken the lead across the market today, with the cryptocurrency’s price rising above $20,000 yesterday and posting parabolic gains today, while altcoins are mostly stagnant.
Where BTC is headed in the medium term will undoubtedly depend largely on whether it can maintain its current strength, as any blow-off top could prove disastrous for its price action.
One trader believes that the cryptocurrency’s short-term trend will determine that of altcoins, noting that a decline in BTC’s price could actually be beneficial for altcoins.
Bitcoin’s bull run is pulling oxygen from the markets
Currently, Bitcoin is trading up over 8% at a current price of $23,150, marking a massive rise from recent lows of $17,600 just a few days ago.
Selling pressure at $20,000 was significant, but the clean break above the level has allowed Bitcoin Lifestyle to enter a price discovery mode.
Altcoins are largely stagnant, posting gains far below those of the benchmark cryptocurrency.
Altcoins could soon see a flood of capital
One trader writes in a tweet that altcoins will likely see a massive flood of capital soon as investors migrate out of bitcoin.
He points to Ethereum’s 8% surge seen in the period immediately after Bitcoin peaked at $23,700. Trader:
„ETH just pumped 8% when BTC crashed. Big for alts. Capital rotation.“
If this trend continues, Bitcoin’s price declines could actually become bullish catalysts for altcoins in the near future.