In the past 24 hours, the altcoin market has witnessed a substantial crash, with many cryptocurrencies experiencing significant declines. However, amidst this turbulence, Bitcoin and Ethereum have shown relative resilience. This article examines the difference between the performance of this leading cryptocurrency and the rest of the market.
Bitcoin Domination and Its Implications:
Over the past few days, Bitcoin dominance has soared to around 46%, according to data from CoinGecko. This metric, which measures Bitcoin’s market share relative to other cryptocurrencies, offers insight into its dynamics. BTC’s increasing dominance signals that Bitcoin prices are outperforming the altcoin market, providing a possible explanation for its resilience.
Altcoin Market Turmoil and Its Causes:
While Bitcoin and Ethereum weathered the storm, altcoins like Cardano, Solana, and Polygon, among others, have suffered heavy losses, as the heatmap illustrates. The plunging prices can be attributed, in part, to the recent Securities and Exchange Commission (SEC) lawsuit against Coinbase, in which many altcoins were registered as securities. Robinhood, another large trading platform, has also announced plans to phase out certain altcoins due to similar issues.
Pause for Unaffected Cryptocurrencies
It is important to note that cryptocurrencies that were not included in the SEC’s claims have fared relatively better. For example, Ethereum’s ETH has seen a modest drop of 5%, while Ripple’s XRP is down around 6%. While these declines are significant, they pale in comparison to the substantial losses of altcoins such as ADA, SOL, and MATIC, which plunged more than 20% over the same period.
The altcoin market has witnessed a major drop in the last 24 hours, while Bitcoin and Ethereum have shown resilience. Bitcoin’s surge in dominance shows that it is outperforming altcoins in price. SEC lawsuits against Coinbase and Robinhood’s delisting plans have contributed to the chaos. Nevertheless, some of the cryptocurrencies not involved in the lawsuit experienced less severe declines.