Continued bitcoin weakness sends altcoins into correction

Bitcoin’s price drop below the psychological 40,000 USD mark is causing most altcoins to plummet.

Bitcoin (BTC) loses a good seven percentage points in a weekly comparison. The leading cryptocurrency is thus bowing to a widening correction on the traditional financial market. This is driven by more restrictive monetary policy signals sent out by the US Federal Reserve and the European Central Bank ECB. Bitcoin‘s correlation with the Nasdaq technology index remains high. A bottom in the crypto market is out of sight. The vast majority of the top 100 altcoins follow the downward trend and even lose double-digit value.

Only the precious metal gold stands out positively in recent trading days. It is trading at USD 1,996 at the beginning of the week, only around 3 percentage points below its all-time high. Investors currently do not seem to equate Bitcoin as “digital gold” with the precious metal. Continued bullish valuations on the part of institutional investors as well as historically low Bitcoin holdings on the central crypto exchanges are not bringing the price rally that many investors had hoped for. As long as Bitcoin can hold the important support at USD 39,300, risk-averse investors may consider temporary price setbacks for additional purchases.

Top 10 stability

The Bitcoin price lost seven percentage points and thus caused further falling prices for the top 10 altcoins in the past trading week.
Apart from Ripple with two percent price loss and Binance Coin (BNB) with only four percent price loss, all other top cryptocurrencies lose double-digit value.
The list of weekly losers is headed by Solana (SOL) and Cardano (ADA), each with a 14 percent price drop. Terra (LUNA) is also bearish again with 13 percent value correction.
Thus the bearish tenor of the previous week extends also in the last seven trading days.
Looking at the ranking of the top 10 altcoins, there is a change in place. Cardano (ADA) slips back to seventh place after regaining sixth place the previous week. Terra swaps places with Cardano again and jumps back up one ranking place to sixth.

Winners and losers of the week

  • The entire crypto market once again trended south in the last seven trading days.
  • In a weekly comparison, all but two of the top 100 altcoins showed a price decline.
  • As in the previous week, only Chain (XCN) and Stepn (GMT) recorded price gains of around seven percentage points each.
  • The long list of underperformers is headed by Mina Protocol (MINA) with 26 percent price drop. Also Convex Finance (CVX) loses with 25 per cent price reduction clearly in value.
  • After a recent 53 percent drop in price, Waves (WAVES) continues to show its bearish side with a 17 percent drop in price. You can find out why here.
  • Around half of the top 100 altcoins lost double-digit value in a weekly comparison.
  • When and if the overall market has found a bottom in a timely manner is largely dependent on Bitcoin’s performance.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment of the analyst.

Picture by Pexels

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