Analyst’s caution: Altcoin Market Could be Overshadowed by Bitcoin’s All-Time High Break
Article Summary:
Bitcoin’s approaching all-time high (ATH) has sparked investor interest and inflows into spot ETFs, with $154 million pouring in. Crypto trader Crypto Tony warns of potential volatility in altcoins as Bitcoin gains more attention. Analyst Geoff Kendrick predicts Bitcoin could surge to $73,798 and potentially reach $150,000 by 2024. While Bitcoin’s rise may affect altcoins in the short term, maintaining a balanced perspective and strategy is advised.
Article:
As the Bitcoin market teeters around the $70,000 mark, the prominent crypto trader known as “Crypto Tony” has offered a crucial piece of advice for the crypto community.
With Bitcoin edging closer to its all-time high (ATH), Tony warns that this milestone could momentarily divert investor attention back to Bitcoin, potentially causing setbacks for altcoins in the short term.
“Just something to be cautious of,” Crypto Tony tweeted on May 23, 2024.
Bitcoin’s performance often sets the tone for the broader cryptocurrency market. As Bitcoin’s price nears its ATH, there is a growing expectation of renewed investor interest and capital flowing towards BTC. In fact, spot Bitcoin exchange-traded funds (ETFs) saw a total net inflow of $154 million yesterday. Notably, the Grayscale Bitcoin Trust (GBTC) ETF experienced an outflow of $16.0914 million.
Furthermore, BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a single-day inflow of $91.9527 million, while Fidelity’s FBTC ETF saw an inflow of $74.572 million. Ark Invest’s ARKB also recorded an inflow of $3 million on the same day.
Meanwhile, Bitcoin’s dominance is expected to increase, currently hovering at 54.12%, indicating a slight decrease in sentiment toward altcoins. This focus on Bitcoin could temporarily overshadow altcoins, potentially leading to setbacks for these emerging digital assets as attention shifts back to Bitcoin.
Crypto Tony’s tweet underscores the need for caution among altcoin investors during this period. Historically, significant movements in Bitcoin’s price have created volatility in the altcoin market. As Bitcoin garners more attention, altcoins may experience a dip in buying pressure and price corrections.
Adding to the anticipation, Geoff Kendrick, Head of EM FX Research at Standard Chartered, offers a bullish prediction for Bitcoin. Kendrick foresees a breakout above the previous ATH, projecting Bitcoin’s price to surge to approximately $73,798.
Kendrick also highlights the potential impact of Ethereum Spot ETF approval by the SEC on Bitcoin’s price dynamics. He reiterates his bullish prediction, anticipating Bitcoin to reach $150,000 by 2024 and an astonishing $200,000 by 2025.
While Bitcoin’s rise may temporarily impact altcoins, maintaining a balanced perspective and strategy can help navigate these fluctuations.