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- Ethereum and other altcoins are under heavy risk due to Bitcoin’s dominance
- An analyst claimed that the altcoin market is facing a catchup risk
- The analyst deemed if Bitcoin fells by more than 30%, the Ethereum and other altcoins price will fell twice from its current level
- Analysts have observed altcoins are offering better returns as compared to Bitcoin
Ethereum and the altcoin market are at risk, as per analysts in the cryptosphere. In mid-May, the Chinese regulatory scrutiny and environmental concerns of crypto mining operations caused a dip in BTC price. As BTC is the leading cryptocurrency, the impact of the price fall was also observed in the altcoin market. Indeed, the entire crypto market fell severely. Filbfilb, an independent market analyst, considered that if Bitcoin price falls by 30%, the altcoin holders could face the risk of facing twice more losses.
Altcoin market is facing a catchup risk
According to Filbfilb, Ethereum and other altcoins should find a shield if BTC sees further major declines in the crypto market. In a tweet thread posted on Friday, the analyst claimed a 30% crash in the BTC market could cause the altcoin market to drop twice as hard.
The analyst further noted, when BTC was consolidated between $50k and $60k, altcoins exploded. Simultaneously, the recent correction in the leading coin’s market, which witnessed a more than 50% fall, had caused a crash in the altcoins market. Notably, they held support when BTC was stuck in the price range of $50,000 to $60,000.
Following the scenario, Filbfilb noted that Ethereum and altcoins have been facing a catchup risk. Notably, the indicators show that even a small downwards shift in the price of the flagship crypto could lead to a pull of the altcoin market twice.
Altcoins offer better profit than Bitcoin
Ethereum has dropped by more than 60% since its last high price level during the recent crypto market crash. However, the Year-to-Date (YTD) returns of the leading altcoin remained 141% at press time as per Messari.
On the other hand, Dogecoin, the meme-based cryptocurrency that has seen tremendous growth this year, shows a YTD return of 4,112%. Notably, the YTD is huge, although the coin lost more than 80% in the recent crash.
In contrast, Bitcoin, which has lost only about 50% of its price value, has shown a YTD return of only 5.71%. Following the scenario, it seems the altcoin market offers a better profit-taking opportunity. Indeed, while top-cap altcoins fell from their last all-time high price level, their performance remained historic.
