Matrixport stated yesterday that the current market dominance of Bitcoin is still high, indicating that this bull market may still be in its early stages and could potentially impact a large-scale outbreak of altcoins.
(Background:
US retail data exceeds expectations! Bitcoin flashes down to $62,000, rate cut obstructed, four major indexes all close black.)
Over the weekend, Bitcoin experienced a sharp drop of 15% due to escalating tensions in the Middle East, plunging to $60,660 at one point, triggering a larger-scale dive in altcoins. The market saw tokens with over 50% retracement, but some analysts speculate that now may be the eve of an impending altcoin outbreak.
Matrixport: Altcoin momentum still limited
Cryptocurrency management platform Matrixport addressed this viewpoint in a post yesterday, stating that based on Bitcoin’s current market dominance (53.9%), this bull market is still in its early stages and the momentum of altcoins is still limited. According to historical experience, during the bull market in 2021, the majority of altcoins will outperform Bitcoin, leading to a decrease in BTC.D. At that time, BTC.D mostly fluctuated between 40% and 48%, and the current level above 53% indicates the strength of Bitcoin. Matrixport also seems to judge that the expected altcoin outbreak by investors in this bull market may be hindered or impacted by Bitcoin.
Glassnode: Historical trends show Bitcoin’s crazy bull market is still early
In addition, cryptocurrency data analysis company Glassnode also stated in a post over the weekend that after Bitcoin broke its all-time high in history, its price has experienced multiple retracements of over 10% and even drops of over 25%. In this current cycle (black line), since Bitcoin broke its historical high in March, there have only been two drops of over 10%:
(Images)
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