Catching up on a volatile Tuesday's market, Bitcoin price reached a high of $69,324 before quickly falling 10%, resulting in a loss of $1 billion. Bitcoin has been the king of all cryptocurrencies since 2011, but many analysts have recently predicted that the Bitcoin era will soon be succeeded by the altcoin season.
Bitcoin rises above $69,000, falls 10%
On Tuesday, Bitcoin soared to $69,324, surpassing its previous ATH. But almost immediately, a large number of sell orders appeared on Binance's order book. A sell order worth 300 Bitcoins worth $20 million at $69,000 and a sell order worth 500 Bitcoins worth $70,000 immediately fell as huge numbers of traders lined up to take profits. , the BTC price level fell below $60,000 in one strike.
As Bitcoin rose above $69,000 to $69,324, intense selling pressure occurred and Bitcoin fell by more than $1,000 in just one minute. A subsequent wave of declines pushed the price further down, hitting a low of $59,700.
Despite the volatility, Bitcoin managed to recover to $62,800. This pullback has seen him drop 7% in the past 24 hours.
Volatility also led to $1.1 billion worth of liquidations in derivatives trading positions across various digital assets within 24 hours. Of the total liquidations, $870 million came from long positions, highlighting the impact the market's sudden downturn had on leveraged traders.
Altcoins wait for the time
With Bitcoin on a frequent roller coaster ride, analysts have turned their attention to the altcoin market, which has seen a massive 50% increase in the past month to reach $1.2 trillion. While meme coins have seen a significant rally, major altcoins such as Ethereum, Cardano, and Polygon (MATIC) have not fully joined the rally.
Matthew Seigel, head of digital assets at VanEck, is optimistic that 2024 will be a promising year for altcoins, especially Ethereum. Siegel highlighted Ethereum's outperformance versus Bitcoin, which has risen 56% since the beginning of the year compared to Bitcoin's 50% rise. He expects ETH to continue this trend, especially with the upcoming block reward halving.
While meme coins have shown their potential with soaring profits, investors may shift their focus to other altcoins such as Ethereum and Solana. As seen in the altcoin profit rotation phenomenon, profit rotation within the altcoin ecosystem can trigger a broader rally in various cryptocurrencies.
Market crash due to Bitcoin
Bitcoin's collapse further led to a collapse in the prices of meme coins such as Dogecoin and Shiba Inu, raising concerns about the speculative nature of these assets. Trader @Cryptomanran advised, “Memes are a great trade, but don't forget to profit from them and incorporate them into a protocol that will make a difference in 5 years.”
On the other hand, high-quality altcoins with strong fundamentals, such as Ethereum and Solana, showed resilience. Ethereum’s upcoming Dencun upgrade and Solana’s competitive gas fees position them as survivors of the bloody Bitcoin crash that affected altcoins and meme coins.
