Since January, in less than four months, the valuation of the crypto market is up around $52 billion from $125 billion with the bitcoin price comfortably hovering above the $5,300 mark.
Historically, alternative cryptocurrencies, or altcoins, have performed particularly well when bitcoin demonstrates a sideways price movement or remains stable in a tight price range.
The valuation of the crypto market is up nearly $52 billion year-to-date, boosted by the positive sentiment around bitcoin (source: coinmarketcap.com)
While bitcoin has been relatively stable in the $5,200 to $5,300 range, due to the lack of upside momentum of altcoins, some traders have become less confident in the near-term prospect of altcoins.
Will Bitcoin Dominate?
According to a widely recognized cryptocurrency trader, the altcoin market failed to test a key resistance level during the weekend, unable to secure new momentum to extend last week’s gains.
“Both were rejected from resistance, altcoins a bit harder. A lot of my confidence in altcoins the past few days was predicated on smallcap dominance being able to break up. After this rejection, I’m significantly less interested in altcoins. Shifting my portfolio heavier skewed to BTC,” the trader said.
In the past 24 hours, many tokens in the likes of Basic Attention Token (BAT), Crypto.com Chain (CRO), Ravencoin (RVN), and Golem (GNT) have recorded losses in the range of 5 to 11 percent against both bitcoin and the U.S. dollar