Altcoins Take a Beating as Bitcoin Closes in on $50,000: What’s Next?

Altcoin prices appear to be dropping after Bitcoin reached past $49,000 yesterday. Indeed, out of roughly 96 DeFi assets listed on Messari, only 10 showed positive movement over the last 24 hours. Why is this?

According to a report from CoinTelegraph, the Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term rally that took place over the weekend may be partially responsible. When Bitcoin hit past $49,000, the rally may have been partially pushed by investors who pulled out of altcoin markets in favor of BTC; notably, the price of ETH also fell as Bitcoin pushed forward.

$BTC

Money is flowing out of alts....

I think it's about to go in to bitcoin. pic.twitter.com/ELQbx25lSU

— Altcoin Psycho (@AltcoinPsycho) February 14, 2021

What is next? According to CoinTelegraph, Bitcoin’s next moves could have big implications for what happens with Altcoins Altcoins Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception, countless cryptos have been launched. Many of these have met varying levels of success, though few have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There are currently over 5,000 altcoins and this number seems to grow constantly. The leading altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins c Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception, countless cryptos have been launched. Many of these have met varying levels of success, though few have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There are currently over 5,000 altcoins and this number seems to grow constantly. The leading altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins c Read this Term. If BTC goes up and then consolidates, altcoins could see short-term benefits: “altcoins tend to surge when BTC is consolidating after an initial impulse rally,” the publication said.

“However, when BTC is rallying or seeing a slight pullback, altcoins often see large price drops against both BTC and the U.S. dollar,” the publication said, and it seems as though BTC could be poised for a rally.

Even with Pullbacks, the Altcoin Market Cap Is Skyrocketing

Buying pressure on Bitcoin briefly fell in the early hours of Monday, February 15th. However, as buying pressure appears to be picking up again, altcoins could be poised for further short-term drops.

Although, the drops appear to be a healthy part of a longer-term cycle of capital flowing into altcoin markets. Crypto YouTuber Quentin Francois, also known as 'Young and Investing', pointed out on Twitter on Friday that the altcoin market cap had “now broke its previous ATH (sic),” a move that he said was “perfectly following the path.”

“When this happened last cycle, the altcoin market cap went up with 320,000%,” he wrote.

The altcoin market cap is perfectly following the path. It now broke its previous ATH. When this happened last cycle, the altcoin market cap went up with 320,000%!!#crypto pic.twitter.com/7YJXzHCY32

— Quinten François (@QuintenFrancois) February 12, 2021

Moreover, pseudonymous trader @RektCapital wrote on Twitter that “at this early stage in the Altcoin market cycle, any major pullback would by no means be a bearish event. In fact, any pullback would enable future uptrends in an otherwise strong and healthy growth cycle.”

“We often talk about how prices don't move up in one straight line. But, it's hard to make that assertion for Altcoin Market Cap's performance throughout 2021. Altcoin Market Cap has literally been moving up in a straight line for weeks and weeks,” the trader wrote.

We often talk about how prices don't move up in one straight line

But it's hard to make that assertion for Altcoin Market Cap's performance throughout 2021

Altcoin Market Cap has literally been moving up in a straight line for weeks and weeks#ALTSEASON pic.twitter.com/RcXBwaFS8f

— Rekt Capital (@rektcapital) February 14, 2021

And indeed, even though altcoin markets may have taken a beating over the weekend, prices already appeared to be on the road to recovery. Over the last 24 hours, the total altcoin market cap fell as low as $525 billion, which is down from $595 billion. At press time, the total altcoin market cap had risen to $565 billion.