BTC down 17% from new ATH. Altcoin season doesn’t continue?

BTC down 17% from new ATH. Altcoin season doesn’t continue?

Bitcoin continues to leap forward, breaking new all-time highs in a matter of weeks, but the coin has tumbled after its most recent bull run. The king of cryptocurrencies officially hit $69,000 last week on his way to the key milestone that would be the $70,000 mark, however, it made a pretty deep correction at the start of the new week. At the time of writing BTC is trading at 61,300usd/btc. Whether this is worrisome, let’s analyze with Primexbt trading how the market will fluctuate.

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The market capitalization of all cryptocurrencies has surpassed $3 trillion and this is the first time the capitalization has reached such a high point, and the news around is still extremely positive. Bitcoin withdrawals have continued to increase even as BTC has suffered a decline, a welcome sign for investors that accumulation is getting stronger even as the price of the coin continues signs of growth.

It is worth noting that while most traders are optimistic that Bitcoin is testing new all-time highs, Bitcoin Futures Open Interest has already exceeded levels last seen in April. Technically, this is what has led to a correction in btc’s price over the past few days.

Meanwhile, stock indexes hit all-time highs as concerns about the latest inflation report prompted some traders to pull money off the table early last week. As expected, Wednesday’s CPI showed consumer prices rose 6.2% in October, the biggest increase in inflation in more than 30 years, prompting a further sell-off on Fed concerns. will tighten monetary more to keep inflation. tick.

The Dow fell 0.6%, the S&P inched 0.3% lower and the Nasdaq shed about 0.7% for the week. Tech stocks were dragged even lower by Elon Musk, who sold about $5.7 billion, or a little more than 3%, of a stake in Tesla. Musk is expected to sell about 10% of Tesla shares to pay taxes, which could further hurt Tesla and tech stocks.

However, hot inflation managed to push up precious metal prices, sending Silver up 5.4% and Gold up 2.4%. Both metals opened the week slightly weaker, down about 0.2% each.

Surprisingly, higher-than-expected inflation didn’t have much of an impact on oil prices as the “black gold” dipped below $80, ending the week down 2%. Concerns about monetary tightening reduce demand for oil, so at the beginning of the week, OIl was still a bit weaker, down about 0.3%.

The cryptocurrency came as a bigger surprise to market participants as the price of BTC failed to move higher as hot inflation continued to soar. However, BTC managed to hit a new ATH of $69,000 before giving up around 15% of its profits afterward.

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Crypto Market Drops After Reaching New High

The market capitalization of all cryptocurrencies passed $3 trillion for the first time on Monday after BTC sped past its previous ATH of $66,900 and as ETH also edged higher, it looks will most likely challenge $5,000. BTC made a big jump in the early hours of Monday and surged above $69,000. Large whale addresses holding between 10k and 100k BTC accumulated an additional 43,000 BTC and increased their holdings by +2.1% in just the previous 5 days.

When “BTC Long” became a crowded transaction after it made a new ATH, BTC started selling off after news that an inactive address contained 2,207 BTC (worth around $150,512,129). just activated after 8.1 years. This creates some concern that inactive older BTC wallets could take the opportunity to sell. However, this particular wallet was later revealed to have sold its BTC on the OTC market, which had no effect on the market price.

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Leverage reset can stabilize the market

Another event that could increase caution among traders is the BTC Taproot Upgrade, which was successfully launched over the weekend. This removal of execution risk could be positive for prices this week as funding rates on BTC Futures have dropped significantly following the sell-off, suggesting that leverage in the market has fallen back to healthy levels.

Another factor supporting the increase in BTC price is that BTC accumulation continued to be strong even during the midweek drop, which led to another low in BTC reserves at exchanges. .

BTC exchange balance has dropped to a new low of just 12.9% of the total circulating supply. If the rate of withdrawals continues, the BTC supply shock could be very strong in the coming weeks and months.

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The Altseason rotation continues but BTC remains the key player.

The altcoin rotation shifted to the original old favorites of 2017 like BCH, XRP, and LTC last week.

LTC is an ancient coin that has been largely forgotten by many traders, and now it has exploded, rallying around 50% to a high of $300 after the number of LTC transactions is proven to have started to increase. . Number of tokens LTC’s circulation, currently 1.25 million tokens per day, is surpassing that of ETH by increasing margins. Traders can buy LTC for deposit because the gas fee of LTC is relatively lower than that of ETH. ETH, with its high fees, is now transferred less frequently and is seen by investors as a token to stake and farm more.

Market participants were keen to chase the trend last week, as tokens that posted triple-digit gains in a few days continue to be hunted by traders looking for quick profits. Tokens like KDA, LRC, IOTX, and K3PR saw larger price gains during the week due to a new wave of frenzied speculation after the metaverse game failed. However, even the new favorites took a hit as soon as most of the big gainers started retreating over the weekend. This rotation into various altcoins is expected to continue during this bull run, and a new topic is expected to play this week.

Despite the large near-term price increases for altcoins, data from Coin Metrics shows that while some smaller-cap assets will certainly outperform BTC during a bull run, it is more likely to not withstand the test of time. Historically, most tokens have fallen in price in the long run against BTC and even ETH.

Speaking of ETH, however, with its price on the higher end, gas fees are rebounding significantly since the end of October as network activity picked up.

High fees are starting to price in some economic activities such as small transfers. And as we have seen above, this has led to an increase in the number of LTC transfers.

The ETH price was also affected after it was reported that the ETH Foundation sold 20,000 ETH on Thursday.

However, 20,000 ETH is not a huge number as there are currently around 12,000 ETH being burned daily. The impact of the 20,000 ETH sold could easily be offset by 2 days of fire, and so the impact of the Foundation sale is on a psychological level rather than the actual price impact. The supply of ETH removed from exchanges is still trending down, meaning that investors have not yet sent their ETH to exchanges for sale, but are still buying and moving them to cold storage or for use in farming DeFi. The amount of ETH in reserve on exchanges has dropped to about 15.7% of circulation, slightly behind BTC’s 12.9%.

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Tim Cook likes crypto but Apple doesn’t

Tim Cook, the CEO of Apple, revealed that he personally owns cryptocurrency and has been interested in it for a while. However, he dismissed the possibility that Apple would add crypto to its balance sheet, as well as the fact that Apple would accept crypto as payment, to the chagrin of many crypto investors. .

What about you, is there any cryptocurrency that interests you?

Be cautious and manage your capital well before entering the financial market is the first advice Primexbt gives you.

Analysis by Ms Kim Chua, Market Analyst of Primexbt trading.

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Primexbt trading was born a few years ago but it has soon established itself in the financial market. Here, you can trade from cryptocurrencies, forex, commodities and indices… Outstanding advantages of Primexbt trading such as: beautiful interface, easy to use, low fees, leverage for home use. investors make money even when the market is down, complete set of supporting indicator tools, Primexbt convesting technology helps new investors to refer to trades of professional investors, Primexbt turbo technology allows demo investors before entering actual orders……

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