As Bitcoin experiences consolidation in price, Altcoin witnesses a surge in market value as traders’ attention deviates from the top cryptocurrency.
- Bitcoin (BTC) has seen continuous growth in price trend since the beginning of 2021, leading to the virtual currency’s current market consolidation.
- Altcoins, which include cryptocurrencies apart from BTC, is expected to undergo market volatility and have successfully grabbed traders’ attention.
- Solid uptrend to surface for altcoins in the market according to trade analysts.
Lateral Territory Welcomes Bitcoin
The profitability of mining Bitcoins (BTC) in 2021 is unparalleled, considering the world’s leading cryptocurrency’s ever-growing market capitalization. However, following the bullish trend, investors are assured of BTC returns, which is directing their interest towards alternate coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Cosmos (ATOM) among others.
The market consolidation of the cryptocurrency also causes this shift from BTC, and the global investments being made towards it. After reaching an All-Time High (ATH) of $41,940 on 8th January, bulls are determined to drive the price even higher in the coming weeks. Analysts still believe that BTC’s value has an excellent scope of increasing despite being traded at number one so far.
Historically, Altcoins Rally Post Bitcoin’s ATH
According to previous instances in the crypto industry, the ascent of an altcoin is guaranteed once Bitcoin breaks records with its price valuation in the market. The recent two bull-cycles highlighting BTCs record-breaking prices will ensure Altcoins’ pace to rally in the trade market. Altcoins hold a current market capitalization of over $200 billion and capture 37.8% of trade in the crypto industry.
With comparatively lesser prices of Altcoins, traders are looking at expanding their portfolios and investments to increase keeping in view the volatility and fluctuations of the market.
Speaking to Cointelegraph, Jean Baptiste Pavageau, a partner at ExoAlpha, commented on the ongoing bullish velocity due to Bitcoin. He said that an observation of a classic wealth dispensation framework had been made, wherein investors are vying to put in their earned profits into blue-chip coins. The appeal of the Altcoin market is attracting traders who wish to gain large returns. The next few weeks will predictably witness an increase in Altcoin trading while Bitcoin’s winning streak will lessen, creating a change in the market focus and allowing the former to skyrocket in terms of price growth.
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