Bitcoin’s increase in a maximum of all time evoked the mixed Altcoins reactions, with some higher than the largest cryptocurrency due to market capitalization and others delaying. And that is divided into the industry lines.
Associated tokens with decentralized finances (Defi) And those of the block chains of layer 2 have a higher performance as investors make the transition to a risk approach. Others, like Tron
Bitcoin Cash, Litecoin and Monero are, in comparison, barely moving.
Even Solana
The favorite of the previous trip to the maximum records seems to be in the background, increasing only 3.9%, while the tastes of SEI, Ethena and optimism celebrate profits of up to 28%.
“Altcoins lead the package in this last rally,” said Thomas Perfumo, Kraken’s global economist, in an email. A fall in the Bitcoin domain is “to reinforce a wide base rally with Altcoins leading the load.”
During 2017 and 2021 they are executed to register the maximums, the Bitcoin domain, a measure of BTC’s participation in the total cryptography market, Rose quickly. In Thursday’s demonstration, it fell to 63.5% of 64%, indicating a change in emphasis towards the Altcoins market
Changing behavior patterns
Cryptographic markets are cyclical by nature. They run without interruption 24 hours a day in a context of high volatility and low liquidity that can create an emotional commercial environment. In previous cycles, the Altcoins often moved in unison, increasing as Bitcoin consolidated and dropped in mass when he rose or fell.
This time, however, it seems different, possibly due to the greater participation of institutions in the industry. Increase in tokens defi can be attributed to the increase in institutional interest in the ether (Eth)that could pave the way for a performance search with the companies that fight to ensure the highest yields.
The same can be said of layer 2 networks. As institutions encounter the problems of Ethereum Blockchain with latency and efficiency, they can consider networks such as the referee that allow liquidity to flow from decentralized exchanges to betting protocols at a fast pace. The token arb of that network increased by 15% in the last 24 hours.
Not so optimistic
Even so, Pet Kozyakov, CEO of Mercuryo payments, said the increase in Altcoins will be short.
“While the Altcoins are also in the green with Ethereum that beyond the $ 3,000 mark, the underlying narrative of the ‘orange pill’ remains firmly in its place,” he said. “The growing state of Bitcoin as a value reserve is one that is increasingly large players and institutions, they cannot ignore.”
That is not a narrative that finds much support from Arthur Hayes, the founder of Bitmex became a fund manager.
“Prepare for an alternative monster season,” he told his followers in X after predicting that ETH would reach $ 10,000 in this cycle.
If Hayes’s prediction is true, Bitcoin could face short -term difficulties, since liquidity will inevitably flow towards the Altcoins market as merchants try to capture speculative profits. This could also be a hammer blow for the old school crypto coins, which lack important catalysts for an impulse.
