While Bitcoin can solidify and move sideways, Altcoins are becoming more and more attractive for investors.
The climbing game of the crypto market during the week continued over the weekend, which meant that the majority of the top 100 Altcoins posted double-digit gains.
The fact that The News Spy initially moved sideways, in combination with the upcoming Corona aid payments for the American population, has ensured that the market continues to rise today.
Market visualization from Coin360
Although the massive inflows of capital from major Bitcoin investors into South Korean crypto exchanges are worrying, the positive fundamentals are largely causing optimism. The good framework conditions for crypto miners as well as the ever decreasing supply are two decisive factors that will probably continue to drive the price upwards.
Meanwhile, some experts are convinced that Bitcoin’s current soaring is partly due to a falling demand for gold, because the crypto market leader seems to be increasingly emerging as the value protection tool of choice , especially among younger people .
Bitcoin is solidifying, moving sideways
After Bitcoin ( BTC ) reached a new record high of 41,940 US dollars on January 8, the price is currently apparently moving sideways. After establishing the psychologically important $ 40,000 mark as support, the cops will next try to move higher.
At the time of going to press, Bitcoin is up 1.53% for the day, bringing the price to $ 40,690. The trading volume in the last 24 hours has meanwhile declined by 26%, which is hardly surprising since it also reached a record high on January 8th.
Since the Bitcoin price no longer has a known ceiling, it is all the more difficult to forecast the further price movement. Chad Steinglass, Head of Trading at CrossTower, warns that increased volatility (price fluctuation) could become the new normal until the market rebalances and stabilizes.
Steinglass explains to Cointelegraph:
“I think we’ve gotten to a point where daily swings of $ 1,000 are completely normal. The existing liquidity of the market makers is becoming smaller and smaller compared to the size of the new major investors. The market makers can therefore no longer take out so much risk for the market, which is why I assume that there will continue to be rapid price fluctuations. ”
Is it the turn of the altcoins?
As in previous upward trends, there is a sideways movement after Bitcoin has climbed. In this phase, many crypto traders then look around for altcoins, which means that partial profits from Bitcoin are often carried in smaller crypto currencies.
Jean Baptiste Pavageau, one of the owners of ExoAlpha, assumes that this will happen again in the current record run. He thinks that Bitcoin’s upward drive will sooner or later subside, whereupon investors will switch to Altcoins:
“In the last two weeks we have already noticed such a redistribution, in which Bitcoin investors write off their partial profits in order to invest in other cryptocurrencies. The possible earnings ratio of Bitcoin is slowly decreasing, which is why the Altcoins are becoming more and more attractive for those investors who strive for high profits. I assume that Bitcoin’s market share will decline again and that Altcoins will boom in the coming weeks. “