By
Chimamanda U. Martha
April 24th, 2024
While Bitcoin has continued to exert a massive weight of about 40.4% of the total industry’s market capitalization, some altcoins are beginning to decouple from the menacing BTC correlation.
The broad digital currency industry has remained depressed in terms of valuation for weeks now with Bitcoin (BTC) trading on a very tight weekly range. In the past 7 days, the premier coin has printed a low of $45,579.81 and a top Bitcoin trading price of $49,544.80 according to data from CoinMarketCap, two diverse levels that show a price difference of approximately $4,000.
The price action shows volatility is gradually being tamed when it comes to Bitcoin, and this gives a good room for the trend to shift in either direction in the coming days, or weeks. The latest on-chain data from Glassnode shows big money spenders are accumulating Bitcoin at a very voluminous pace compared to the rate at which the cryptocurrency is being mined.
“Strong handed HODLers are absorbing supply at more than triple the rate of new coins being mined each day,” on-chain analytics platform Glassnode summarized in the latest edition of its weekly newsletter.
The accumulation is technically expected to have a corresponding positive impact on price and this suggests that whatever change in trend the market may record in the near future will likely squeeze out short investors. Despite this subtle expectation of a price surge, the $50,000 price range comes off as the price level to watch.
Fundamental Backing Supporting Bitcoin Trading Price Ambitious Boom
Bitcoin has the acclaim of many players in the market with many projecting the world’s most valuable coin to end the year in a grand and bullish manner.
The current price action is not reflecting these sentiments, and this is despite the fact that institutional investors like MicroStrategy Incorporated (NASDAQ: MSTR), and El Salvador continue to accumulate the coin and boost the coin’s public image. Bitcoin has good fundamentals as it is currently championing many moves in which regulators and lawmakers have continued to explore viable avenues to permit the coin’s growth.
Bitcoin’s fundamentals have extended to global traditional players, fintech firms, and supermarkets accepting the coin as a means of payment. Sustenance of this positive disposition is certain to aid the coin’s near-term and future growth potentials.
Altcoin’s Growth Viability
While Bitcoin has continued to exert a massive weight of about 40.4% of the total industry’s market capitalization, some altcoins are beginning to decouple from the menacing BTC correlation. While Bitcoin’s price traded at $48,590.83, down by 1.25%, altcoins like XRP have maintained a good uptrend of 17.76% over the past week to hit a multi-week high of $1.
From the advances in protocols building on altcoins, their use cases are bound to grow in the coming year, thus fueling a likely massive altcoin surge.