- Bitcoin ETF approval hype continues.
- Altcoin prices take a sharp dip over the weekend.
- Bitcoin demonstrates stability amid the wider sell-off.
The new year has been dominated by the hype surrounding the imminent approval of Bitcoin ETFs following years of rejection at the hands of the US Securities Exchange Commission (SEC). The building anticipation of BTC ETFs triggered an altcoins selloff this weekend, with most projects suffering significant drawdowns as the market leader held steady.
Altcoins Suffer Painful Weekend
Crypto markets tumbled this weekend as skittish capital fled altcoins, lopping $38 billion from the total market cap since Friday, according to CoinGecko data. Of the top 100 cryptocurrencies, the biggest losers over the last 24 hours were Celestia, IOTA, and Axie Infinity, falling 10.8%, 10.4%, and 9.5%, respectively, at the time of writing.
Michaël van de Poppe, the founder of MN Trading, commented that the altcoin flight was “not strange” considering that all eyes are on Bitcoin and the expected ETF approvals currently. van de Poppe predicted that altcoins would recover after ETF approval.
Trader Satoshi Flipper expressed his intent to stay long on altcoins while continuing to accumulate until the expected blow-off top. Satoshi Flipper echoed van de Poppe’s analysis of the situation, stating that “Nothing will shake me out” until the market reaches new all-time highs.
As altcoin investors nurse mounting losses, trader Crypto Feras sought to soothe the pain by sharing his technical analysis that concluded that altcoins remain in a macro uptrend despite the weekend sell-off.
As altcoins bled out over the weekend, market leader Bitcoin showed stability with a flat 24-hour performance above $43,200.
Bitcoin Stable Amid Wider Market Downturn
The altcoin bleed out over the weekend saw market leader Bitcoin trading in a narrow band between $43,200 and $44,500. Furthermore, each daily candle during the period printed a small candle body, indicating stability amid the sell-off panic.
BTCUSD daily chart on Trading View.
Bitcoin dominance bottomed on December 30, 2023, leading to nine consecutive daily green closes, peaking at 54.4% on January 8 to record a four-week high. However, a strong rejection at 54.4% resistance brings some reprieve to altcoins at this time.
BTC.D daily chart on Trading View.
On the Flipside
- Many anticipate that the SEC will approve Bitcoin ETFs this week.
- If ETFs are approved, expected institutional inflows may see a further divergence between Bitcoin and altcoins.
- Speculation is mounting that an XRP ETF is in the works.
Why This Matters
The weekend price turbulence in crypto markets has highlighted a stark separation between Bitcoin and altcoins, with the latter demonstrating its authority. However, it’s important to note that such weekend fluctuations should not be taken as a long-term outlook.
Read about the SEC’s advice not to FOMO into Bitcoin over ETF hype here:
SEC Warns Against Crypto FOMO Amid Surging Bitcoin ETF Hype
Find out more on Anthon Pompliano’s BTC ETF warning to Wall Street here:
Can Wall Street Tame Bitcoin Beast as ETF Nears Approval?
