altcoins lag, Bitcoin price breaks $111,000: Why this bull market is different from 2021
Crypto company Matrixport has already gained insight into why this bull market is different from the bull market in 2021. Their analysis further clarifies that although the price of Bitcoin gathers to a New historical highs (ATH) $111,900.
Why is this bull market different because altcoins lag behind Bitcoin prices
exist X PostsMatrixport said many traders missed the current Bitcoin price rally, although traditional retail participation metrics remain low, despite the rally to the new ATH. The company explained that due to institutional investors This bull market.
Matrixport notes that this explains why funding rates remain unchanged, retail activity is low, and many altcoins continue to lag Bitcoin Price In this bull market rally. The company also revealed that retailers made the fundamental mistake of not expecting market corrections, resulting in their occasional closing of their positions during a sharp decline.
This bull market is also different from 2021 in the share of retail Bitcoin ownership and will no longer expand. Crypto whales have stepped in and absorbed the supply of most flagship cryptocurrencies, kicking retail investors to the curb. Bloomberg analyst Eric Balchunas Once pointed out, this could explain why Bitcoin prices performed well during major corrections.
According to Matrixport, it is crucial to understand how company demand affects Bitcoin price behavior and how long this trend may last. Meanwhile, the lack of retail merchants in this cycle explains why funding rates and transaction volumes are relatively low, while altcoins lag.
The company notes that market participants are witnessing Bitcoin transfer from early adopters and investors, miners and exchanges to Companies like strategy and institutional investors like BlackRock. Matrixport once again asserts that the current Bitcoin price rally is driven by spot market accumulation rather than derivatives activity, which could explain why AltCoins lags behind BTC.
Next Steps for BTC and Altcoins
In X posts, Crypto Analyst Kevin Capital Note that the next important step is to record the weekly closing price of Bitcoin above $106,800 and then follow or consolidate next week. He pointed out that BTC is indeed the only thing that matters and urged market participants to turn their attention to altcoins.
If Bitcoin price fails to achieve this, analysts say market participants can turn their attention to the reverse psychology 2021 fractal. Worth mentioning The dominance of BTC Cool in summer.
At the time of writing, the Bitcoin price is trading at about $108,258, down nearly 2% in the past 24 hours. data From CoinMarketCap.
Featured images from Pixabay, charts from TradingView.com
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