Altcoins’ Under Heavy Losses, BTC Bias in Favor of Bears as Stock Market Fears Another March-Like Sell-Off


Bitcoin's price remains flat, with volume dying despite the stablecoin supply explosion in 2020. It just took four months for the stablecoin supply to double to reach 12 billion while it took five years to reach the initial 6 billion.

In the past few weeks, bitcoin's correlation with the S&P 500 is also surging, and it is struggling to outperform the gold.

However, as we reported declining volatility is indicating we may be about to see some action.

“The Bitcoin market continues to trade within range. Caution is advised as long as price remains in this range,” said trader CryptoYoda.

Although the weekly candles are giving a short-term bullish outlook as they slowly trend upwards, the trader says, “Unless $10,500 is taken out, the bias remains in favor of the Bears and further consolidation.”

Retail Activity Pushing Prices Higher

Bitcoin trading sideways, however, has been suitable for altcoins, which have been rallying, most notably Dogecoin. This “joke cryptocurrency” had a volatile last week driven by Tik Tok zoomers.

Retail trading has the equity markets ballooning with the millennial and Gen Z using commission-free apps like Robinhood, which saw a record 3 million new accounts in Q1, to invest in cheap assets. This retail activity also spilled into the digital asset market.

While Dogecoin never reached $1 as the viral challenge went on Tik Tok, on July 8th, over 1 billion units of supply that haven't moved for two years was suddenly transferred.

Cardano was another one that saw its market reaching new 2020 highs on July 8th, which saw it passing LTC's market cap after ADA prices rose in anticipation of the Shelley mainnet release.

Meanwhile, LINK jumped to a new ATH and captured the 10th spot, VeChainThor also exploded higher with DeFi tokens using this rally to push even further.

Red or Green?

Amidst the greens, yesterday, bitcoin slid slightly after the stock market dropped, which resulted in Altcoins falling as well. On Monday, Nasdaq rallied to set an all-time high only to close down by over 1%. The last time this happened was in early March 2020, which had traders fearing another March sell-off like situation.

But that time, the Fed wasn't printing money like crazy.

For now, among the top cryptos, ADA is down the most by 6.50%, followed by Chainlink's (LINK) about 5%.

Other losers include Ampleforth (37.4%), Loopring (10.89%), Synthetix (10.60%), Theta Token (9.46%), REN (9.28%), Balancer (7.17%), Tezos (7%), Kyber Network (7.96%), Ravencoin (7.96%), Algorand (6.85%), Compound (6.52%), Stellar (6.12%), Ziliqa (5.90%), Elrond (5.5.61), Matic Network (5.09%), VeChian (4.73%), BNB (4.33%), BitTorrent (4.18%), and Tron (3.97%),

In the past hour, however, things have started to turn green.

It all depends on how bitcoin behaves now. If the world's leading cryptocurrency continues to trade sideways, altcoins will rally. Even a slight uptrend could help these cryptocurrencies, but a drop in Bitcoin price will mean only more losses for the altcoins.

“Alts will likely take a hit once Bitcoin shows its true face in the form of turbulent moves in either direction; thus, more patience is needed,” said CryptoYoda.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide