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Breaking News: Could Chainlink (LINK) Triple In 5 Years? Why A $20B Market Cap Is Possible
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Breaking News: Could Chainlink (LINK) Triple In 5 Years? Why A $20B Market Cap Is Possible

Here’s What Could Stop The Altcoin Bull Rally Dead In Its Tracks

Best Owie
Best Owie
Last Updated: June 11, 2024 8:06 am
2 mins read
Altcoin bull rally roadblock

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The majority of altcoins in the crypto space have been rallying independently of the largest cryptocurrencies in the space. However, while this has been good so far, it could also present a possible roadblock for the altcoin bull rally.

Bitcoin And Ethereum Could Cause A Problem

Over the last week, while multiple altcoins have been rallying and seeing double or triple-digit gains, the price of the two largest cryptocurrencies in the space, namely Bitcoin and Ethereum, have not seen much upside. They have continued to consolidate without affecting the market.

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According to a report by on-chain data aggregator Santiment, this has seen the likes of HEX and GRT rally tremendously. Also, during this time, AI tokens such as FET and AGIX have done well, enjoying the continued attention being given to artificial intelligence by investors.

However, Santiment cautions investors who are putting money into small and mid cap altcoins at such a time. The problem here lies in the fact that these altcoins are seeing price increases without any positive movement from Bitcoin, which is an established market mover.

📊 February hasn't seen a repeat of excitement for #Bitcoin & #Ethereum like we saw in January. But #altcoins like $HEX (+64%), $TMG (+70%), and $GRT (+66%) have had other plans this past week. Be cautious, though, when money is cycling into mid/small caps without top cap rising. pic.twitter.com/TYO8pNh5yF

— Santiment (@santimentfeed) February 7, 2023

Thus, if the prices of Bitcoin and Ethereum begin to move once more, it could drain liquidity from these small and mid caps as investors rush back into established coins. The result of this would be a massive decline in price that could very well wipe out all of the gains established over the last week.

Altcoin Bull Rally May Continue

Now, while there is certainly some threat from Bitcoin and Ethereum suddenly moving, the altcoins have shown strength. For example, the market dominance of bitcoin has dropped 1% in the last week, falling from 44.21% last Friday to its current dominance of 43.40%. Likewise, Ethereum’s market dominance fell from 19.84% on Friday to 19.69% today.

Bitcoin dominance over altcoin chart from TradingView.com

BTC dominance drops in the last week | Source: Market Cap BTC Dominance on TradingView.com

Given this increase in altcoin dominance, it proposes that the rally may not be as significantly affected when Bitcoin and Ethereum begin moving. Also, altcoins could also enjoy some upside if these large cap assets begin rallying once more. But for now, the price performance of BTC and ETH remains muted.

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According to data from Coinmarketcap, the most profitable altcoins over the past week have been the AI tokens. AGIX is up 224% in the seven-day period while FET is seeing 109% gains in the same time period. Others include GRT with 95% gains and OCEAN with 55% gains.

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Bounteous, chart from TradingView.com
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Best Owie
Best Owie

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

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Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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