Catching up with the turbulent Tuesday market, the price of Bitcoin reached a high of $69,324 and soon fell 10%, creating a $1 billion selloff. Bitcoin has remained the king of all cryptocurrencies since 2011, but recently many analysts have been predicting that the Bitcoin era will soon be replaced by altcoin season.
Bitcoin rose above $69,000 and fell 10%.
On Tuesday, Bitcoin surged past its previous ATH to $69,324. However, almost immediately, a huge number of sell orders appeared on the Binance order book. A huge number of traders lined up to take profits, and a $69,000 sell order for 300 Bitcoin worth $20 million and a $70,000 sell order for 500 Bitcoin caused the BTC price level to fall below $60,000 in one strike. It went down immediately.
After Bitcoin surpassed $69,000 and reached $69,324, there was extreme selling pressure, causing Bitcoin to fall by more than $1,000 in just one minute. A subsequent wave of selling caused the price to fall further, reaching a low of $59,700.
Despite the volatility, Bitcoin rebounded to $62,800. The decline brings the stock down 7% in the last 24 hours.
Additionally, volatility caused $1.1 billion worth of derivatives trading positions across a variety of digital assets to be liquidated within 24 hours. Of the total liquidations, $870 million came from long positions, highlighting the impact a sudden market downturn has on leveraged traders.
Altcoins are waiting for their time
As Bitcoin experiences frequent roller coaster rides, analysts are turning their attention to the altcoin market. The altcoin market increased by a massive 50% last month, reaching $1.2 trillion. While meme coins have seen significant surges, major altcoins such as Ethereum, Cardano, and Polygon (MATIC) have not fully participated in the rally.
Matthew Seigel, Head of Digital Assets at VanEck, is optimistic that 2024 will be a promising year for altcoins, especially Ethereum. Seigel highlighted Ethereum’s outstanding performance against Bitcoin, with a 56% increase compared to Bitcoin’s 50% increase since the beginning of the year. He expects ETH to continue this trend, especially with the upcoming block reward halving.
While meme coins have shown their prowess with soaring profits, investors may shift their focus to other altcoins, including Ethereum and Solana. This profit rotation within the altcoin ecosystem can trigger a broader rally in various cryptocurrencies, as observed in the altcoin profit rotation phenomenon.
Bitcoin Impact Market Crash
The Bitcoin crash led to a plunge in the prices of meme coins such as Dogecoin, Shiba Inu, etc., raising concerns about the speculative nature of these assets. Trader @Cryptomanran advised, “Memes are amazing trades, but remember to apply them to protocols that will benefit the kids and make a difference in 5 years!”
On the other hand, high-quality altcoins with solid fundamentals, such as Ethereum and Solana, have shown resilience. Ethereum’s upcoming Dencun upgrade and Solana’s competitive gas fees have positioned them as survivors of the Bitcoin crash that affected altcoins and meme coins.