Altcoins have held up well despite Bitcoin’s recent decline, which could mean investors are changing their strategies to protect their money during uncertain times. The analysts suggest this might signal a shift, with investors finding value in altcoins rather than sticking to the usual trend of turning to Bitcoin when the market dips.
According to CoinMarketCap, analysts highlighted Bitcoin’s recent dip. On Sept. 7, its value dropped to $52,827, a 10.8% decrease from the previous week. Since then, Bitcoin has bounced back a bit to $57,001, but it’s still struggling to break past the important $60,000 mark, a level it hasn’t hit since Aug. 30.
They pointed out that as Bitcoin’s price dropped, its market dominance, reflecting its crypto market share, fell by 1.3%. On the other hand, the total market value of cryptocurrencies outside the top ten rose by 4.4%.
Altcoin holds strong amid Bitcoin surge
As of now, Bitcoin’s dominance stands at 57.33%, down 0.50% from last week, according to TradingView. It’s approaching 60%, a level that Benjamin Cowen, founder of Into The CryptoVerse, views as the “final push” for Bitcoin’s market dominance. Traders tend to look for clues that Bitcoin dominance is reaching its peak as a sign to sell and move their funds into other assets like altcoin.
Meanwhile, the total open interest (OI) in altcoins, which refers to the number of active contracts not yet settled, has dropped by 55% from its highest point. Bitfinex analyst stated that this suggests a lack of enthusiasm from speculators and possibly that sellers are running out of steam. Several traders believe that fewer speculative investments in altcoins indicate a healthier market overall.
Crypto trader Emperor said in X post that Altcoins have held up well during the recent correction, and the rebound, with minimal rise in Open Interest, points to lasting strength. In the meantime, 360trader shared an optimistic outlook, saying the altcoin market is “looking very strong.” Similarly, Michael van de Poppe, founder of MN Trading, sees this as a good time to buy into altcoins.
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