Bitcoin and Ether are Selling While Smaller Altcoins Hold Firm
Currently, the cryptocurrency Bitcoin is falling, as is ether, after setting an all-time high. But some pockets of the crypto market ignored all the recent worries and are doing fine.
Take Z-Cash, for example, which has grown about 30% since early November, according to Bloomberg. Avalanche tokens are also doing well, up about 50% in the last seven sessions, while Crypto.com’s CRO coin has advanced quite a bit to rank 13th in terms of market cap and to $18 billion Dollars have gone up.
It is not uncommon for so-called alternative coins to crash while their older counterparts suffer more. This is because many of them are tied to certain stories that help them level up. For example, Crypto.com announced a deal last week to replace Staples as the title sponsor of the legendary Los Angeles sports center. Analysts say this helps the CRO token rise.
“Typical altcoin investors are currently on the rise and trying to find the next big move,” said Stephen Willett, CEO, and co-founder of crypto platform FRNT Financial Inc.
Meanwhile, the largest cryptocurrencies have remained on sale over the past week, and Bitcoin is nearing a 20% correction from its recent record. Ether, the second-largest digital asset by market value, was 8% below its highest level since Nov. 10.
Bitcoin was down 5.9% at 3:44 pm. in New York on Monday around 56,029 US dollars will be traded. Ether was down about 6.6% to around $4,079.
“Despite the turmoil, it’s still technically a bull market,” said Matti Greenspan, founder, and CEO of Quantum Economics. “This way, the money that goes out of the big coin can easily go into some of the smaller coins.”
Strategists cite a number of reasons why Bitcoin and several other traditional cryptocurrencies are selling out, including the suppression of crypto in China and new US tax reporting regulations, which are seen as unfavorable for crypto investors, also worsening sentiment.
Mike McGlone, it makes sense to get some fresh air on some tokens that are hard to raise so quickly.
“For the broader market, I see a wall of fear, returns, and filling in a bull market,” he said. “Shiba Inu getting too expensive, that’s a signal of overheating for the whole market, like Doge in May.”
However, according to Krakens Perfumo, there are still many positive catalysts for the rise in crypto prices. He mentioned, among other things, the renaming of Jerome Powell at the Federal Reserve i’m as optimistic as I am about the industry in the long term