After reaching $44K, Bitcoin’s price has fallen to $40,889 as of now (12:52 am EST), leaving traders and investors on edge. While Bitcoin experienced a dip, other cryptocurrencies such as Ether declined 1% below $2,200. On the flip side, altcoins like Polkadot (DOT), Cosmos (ATOM), and Injective (INJ) performed well, gaining between 10% and 20% in the last 24 hours. Avalanche (AVAX) also saw significant growth, overtaking dogecoin (DOGE) in market capitalization, media reports said.
The U.S. interest rate decision plays a crucial role in influencing Bitcoin’s price movement. Traders were cautious ahead of this year’s last Federal Open Market Committee (FOMC) meeting as they awaited an announcement on Fed fund rates. Additionally, the recent leverage flush and largest daily drawdown since mid-August contributed to heightened volatility in the market.
Crypto analyst Will Clemente views the current market correction as a necessary phase to shake out weak positions and alleviate highly leveraged markets. According to him, this volatility is part of the natural evolution of the market. Another prominent crypto trader known as Remen believes that this downturn might pave the way for an altcoin bull run after Bitcoin consolidates its position.
Following Bitcoin’s fall, many altcoins witnessed double-digit declines, reflecting their correlation with the leading cryptocurrency. However, Santiment’s on-chain analytics flagged a surge in social media posts advocating for “buying the dip.” This sentiment indicates collective confidence within the community regarding Fan impending uptick in altcoin prices.
Bitcoin’s momentum since October has been instrumental in propelling its value by nearly $10,000 in the past month. This breakout after a stagnant six-month period suggests a significant shift in the market trend. Analyst Hitesh.eth highlights the continuous accumulation of BTC by accounts holding over 1 BTC, further supporting the notion of a positive market outlook.
With institutional inflows and increased interest from financial giants, altcoins such as Ether, XRP, Cardano, Solana, and Shiba Inu could potentially capitalize on Bitcoin’s downturn and spearhead the next major rally in the cryptocurrency landscape.
As Bitcoin experiences a temporary consolidation phase, it might be wise for investors to pay closer attention to altcoins such as Ether, XRP, Cardano, Solana, and Shiba Inu. These altcoins have shown resilience and are potential candidates for growth during this market correction.
The recent fall in Bitcoin’s price has created uncertainties in the cryptocurrency market. However, it also presents potential opportunities for altcoins to shine. Investors should consider diversifying their portfolios and evaluating long-term investment strategies.
