Investors in a Frenzy as Bitcoin Falls Altcoins Drop Discover Top Investment Opportunities

Key Points
The cryptocurrency market cap decreased as Bitcoin price fell below $65k, prompting investors to abandon altcoins.
Bitcoin has been trading between $61k and $72k for an extended period.
The approval of spot Ether ETFs in the US could trigger an “Altseason” as altcoins gain value compared to Bitcoin.
In the last 24 hours, the total cryptocurrency market cap dropped by approximately 3% to $2.48 trillion on Tuesday during the early European session. Altcoins suffered the most significant losses after Bitcoin’s price briefly dipped below $65k. Consequently, almost $500 million has been liquidated from the leveraged cryptocurrency market, primarily affecting long traders.
The question now is whether this is just a temporary setback or the beginning of a more significant trend. Let’s explore what experts are predicting.
Substantial Outflows from Bitcoin ETFs
Concerns about a prolonged bearish market have led to a shift from altcoins to stablecoins as investors seek safer assets. As a result, Bitcoin’s market dominance has risen by approximately 1% in the past day, now standing at around 56.18%.
Over the past week, US-based spot Bitcoin exchange-traded funds (ETFs) have experienced significant cash outflows. On Monday, Fidelity’s FBTC and Ark’s ARKB saw outflows of around $92 million and $50 million, respectively. Most spot Bitcoin ETFs, including BlackRock’s IBIT, reported zero net flow on Monday. Consequently, the total assets under custody in US spot BTC ETFs amount to about $58 billion, with a trading volume of approximately $1.2 billion.
Liquidations and Bearish Sentiments
The recent cash outflows are linked to substantial crypto liquidations and prevailing bearish market sentiments. Bitcoin’s price has been range-bound between $61,000 and $72,000 for the past four months.
On Tuesday, Bitcoin was trading at approximately $65,578, slipping below the daily 50 Moving Average (MA) as the Relative Strength Index (RSI) approached oversold levels.
If the bearish sentiment persists, Bitcoin is likely to find strong support between $57,000 and $60,000. However, if the market bounces back from the current bearish trend, Bitcoin could potentially reach a new all-time high soon.
Anticipated Altseason
With the recent approval of spot Ether ETFs in the United States, listings and trading are scheduled to commence next month.
Currently, Ether’s supply on exchanges is at an all-time low, alongside a notable increase in new Ethereum wallet addresses. As Bitcoin’s dominance nears a macro falling logarithmic resistance level below 60%, experts anticipate the imminent arrival of Altseason.
In conclusion, as Bitcoin’s dominance wanes, the future of cryptocurrency trading is uncertain. Only time will reveal whether altcoins will continue to gain momentum against Bitcoin.
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Altcoins
Bitcoin
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