*The crypto market saw a historic bout of capitulation in middle March with Bitcoin being particularly hit. *The flagship cryptocurrency had a huge decline in which it plummeted from $8,000 to bottom low of $3,800. Alternative cryptocurrencies otherwise referred to as “Altcoins” had their share in the bloodbath. During this period, Bitcoin became a firm guide for the rest of the crypto market with several Altcoins posting similar movements with Bitcoin.
However, in feat, Bitcoin went ahead to reclaim all it had lost in the March market carnage and tested the $10,000 psychological level as block reward halving in which mining reward is halved from 12.5BTC to 6.25 BTC occurred on the 629,999th block.
As Bitcoin halving drew nearer, there was noted a massive influx of investors who saw the potential upside spurred by its increasing status as “hard money.” Bitcoin had also shown a gradual decoupling from the stock market depicted by its bullishness against a bleak global outlook.
Recent data indicated that Bitcoin outperformed the US benchmark stock index, S&P 500 by 30%.
In comparison with Bitcoin which had received recent recommendations from macro investors such as Paul Tudor Jones, Altcoins seemed to be weighed down against this backdrop.
As Bitcoin’s popularity soared, BTC dominance against the entire crypto market rose, many Altcoins were subdued as they posted losses in their BTC trading pairs with some trading at multi-year lows.
Analysts also presume that the much expected “Altseason” had seemed to weigh down investor hopes.
Earlier on today, most of the first 20 Altcoins by market cap had posted losses in their BTC trading pairs.
In mid-February, BTC dominance stood at almost 60%, however with its recent bullish stint, BTC dominance rose to 68% in the previous week.
Analysts allude as its recent upswing towards $10,000 was most likely spurred by investors who took their funds away from Altcoins. Several Altcoins fell against this backdrop consequently.
However, in a glimpse of hope, a crypto trader sees this recent downswing as a perfect storm for an impending “Altseason”. He expects one more capitulation stint which would usher in greater opportunities.
Another trader who also shared this view sees bullishness ahead of Bitcoin while Altcoins capitulate.
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