Traders Opt For Altcoins As Bitcoin Price Surges
The prices of altcoins are rising rapidly following days of consolidation in Bitcoin’s price and as the expectation of a $3 trillion stimulus boosts investors’ morale. Traders have not relented their bullish outlook as they continue to increase their stake in altcoins for the whole week. This is obvious as most of the highly-traded tokens on CoinMarketCap can be seen making huge gains throughout the week.
The surge in the prices of altcoins witnessed today results from a short-time consolidation and a renewed stimulus package for the U.S citizens. Meanwhile, stakeholders have been excited about Bitcoins’ current huge inflow into the South Korea market spurred by BTC big traders.
Bitcoin consolidates in a range before the next move
However, investors and traders are keeping alive their optimism about the rise in Bitcoin’s price judging from some fundamental aspects such as a fall in supply and miner sentiment. Many analysts have asserted that the continuous surge in the price of Bitcoin is boosted by the change in investors’ preference from gold to cryptocurrencies as a hedge against inflation.
Bitcoin is now briefly consolidating in a new region after reaching a record high in early January as buyers are unrelenting to keep the price moving after attaining the $40,000 mark. As of the press time, BTC has risen by 1.5% jump to $40,600, while there has been a 25% decline in volume from the all-time high reached on January 8.
It’s not easy to anticipate the next direction of Bitcoin as there is no resistance yet.
However, some experts assert that we will likely witness a continuous increase in volatility pending the period that the market settles into a more calm territory. Chad Steinglass, an investment expert, states that we have now reached a period where intraday movements in prices are now above the $1,000 mark.
Is this the emergence of a new altcoin?
Historically, a surge in Bitcoin’s price is always accompanied by a consolidation. The period often witnesses traders switching their focus to altcoins, making the smaller cryptos benefit from the halt in rising. Other analysts agree to the assertion, adding that Bitcoin will decline the bullish momentum, thereby giving investors the need to opt for altcoins.
Jean Pavageau compared the development to a distinct “wealth” distribution pattern because traders are willing to withdraw their profits and invest in other top coins. As we witness a decline in Bitcoin’s volume, traders are divesting to altcoins to add to their profits.
In the next couple of weeks, the bullish momentum in altcoins may keep increasing while Bitcoin is decreasing. Ether (ETH) has been hitting a new all-time high. Its price is now around $1,260, a 4% rise. Likewise, Bitcoin cash has risen by 23%, while Bitcoin SV has had a 60% rise. Stablecoin has also risen by more than 40% in a related development in just a single day following a week of positive news about its ongoing projects.