Bitcoin Takes the Spotlight
Bitcoin (BTC) is hogging the limelight, and it’s not sharing. As it rallies like it’s training for the Olympics, the rest of the cryptocurrency market is forced to sit on the sidelines and watch—especially altcoins. Sellers are getting twitchy, and the demand for alternatives is dropping faster than a bad joke at a comedy club.
Volume Trends: A Tale of Two Markets
According to researchers at Santiment, Bitcoin’s trading volume is flexing its muscles while its competitors like Chainlink (LINK), Ether (ETH), and Binance Coin (BNB) are struggling to lift a finger. In their recent report, they noted a disturbing decline in the trading volume for these altcoins:
- ETH – Losing steam like a cheap party balloon
- XRP – Struggling to keep its cool
- LINK – Holding on for dear life
- BNB – Feeling the pressure
It seems that traders are confidently predicting a long stretch of Bitcoin glory, leaving the ‘altseason’ under wraps for now.
Can Altcoins Bounce Back?
In the crypto rollercoaster, history tends to repeat itself. During bullish runs, Bitcoin usually jets off first, paving the way for altcoins to follow suit after BTC reaches its latest peak. Right now, traders are watching and waiting for that proverbial green light to come in 2021. Until Bitcoin shows signs of stabilizing and settles down, altcoins might just have to keep waiting.
The Bitcoin Dominance Index
Talk about a power trip! Since mid-September, Bitcoin’s dominance index has leaped from 56% to a whopping 63.4%, marking a stunning 7.4% uptick in only two months. It’s like the high school prom queen suddenly becoming the principal!
The Altcoin Dilemma
Michael van de Poppe, an expert trader in Amsterdam, mentioned the possibility of a resurgence for altcoins in the first quarter of 2021. He’s keeping his fingers crossed for the December top structure. Here’s the bottom line: When Bitcoin sees a boost, altcoins often plummet as investment cycles back into BTC. It’s a perilous cycle, with altcoins caught in a tug of war that nobody wants to lose.
