Bitcoin's recent decline has cast a shadow over the entire cryptocurrency market. When Bitcoin falls, most alternative coins, or altcoins, also fall, causing widespread losses.
Ethereum recently topped $3,300 but is currently below $3,200, marking a 4% daily decline. But it's not just Ethereum. Other major altcoins such as Solana, Dogecoin, and Cardano are also down in the range of 5% to 8%.
While some altcoins are holding up better, others like CORE, PEPE, GALA, and FLOKI have been hit harder. This overall downturn resulted in a significant decline in the market capitalization of cryptocurrencies, dropping by more than $60 billion to $2.43 trillion.
The blood festival continues…
Analyst Benjamin Cowen believes altcoins could face a tough road ahead, with a potential decline of up to 40% against Bitcoin in the coming months. Cowen bases his predictions on historical trends, citing declining public interest and increased uncertainty around whether the Federal Reserve will cut interest rates.
Cowen compares this situation to previous cycles, highlighting how the ALT/BTC pair tends to underperform right before a rate cut, suggesting further declines. Despite the short-term volatility, Cowen remains firm in his views on altcoins, highlighting their continued struggles amid waning public interest, similar to the challenges they faced in 2019. are doing.
Investors, please note: Volatility is here!
With the price of Bitcoin falling to $59,500 and altcoins undergoing a significant correction, analysts are expecting further declines, with the $58,000 threshold representing the 100-day EMA. If it breaks out, the forecast is for it to remain around $52,000.
Analysts like Patrick H. warn of a difficult emotional journey for investors in May, with a final shakeout period beginning in the next two to six weeks before a potential breakout. I predict that. This highlights the current euphoria in the market and continued outflows from Bitcoin ETFs.
What’s next for Bitcoin?
Bitcoin prices have been on a roller coaster lately. After approaching $65,000 on Monday morning, it fell to $62,000 and then to a two-month low of $59,100 before briefly rising. Bears then pushed the price down to just over $57,000, its lowest since February 28th.
This economic downturn coincides with the upcoming US Federal Open Market Committee (FOMC) meeting, which is often associated with increased market volatility. Expectations surrounding the Federal Reserve's interest rate announcement have stoked FUD (fear, uncertainty and doubt) in the market, causing the dollar index to rise as investors seek refuge.
Cryptocurrency markets are known for their high volatility. Remember, this too shall pass. However, be sure to do your own research before investing.
Also check out: Here's where Bitcoin (BTC) price begins a new rally
