Bitcoin reclaims $70,000 mark; is it time for altcoins to outperform?

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.