The recent market correction has raised concerns among crypto investors, with Glassnode co-founders Jan Happel and Yann Allemann warning that altcoins may be losing their bullish momentum. The duo, known as Negentropic on social media, have highlighted the potential end of the so-called “altcoin season” that began in late November, as many altcoins experienced significant pullbacks in the last week.
The Glassnode team suggests that unless Bitcoin recovers a key psychological price point, traders and investors may adopt a risk-off approach towards altcoins. The rise in Bitcoin dominance, which has surpassed $100,000, indicates a stronger environment for BTC compared to altcoins. As a result, altcoins may struggle to keep up with Bitcoin’s performance in the coming days.
The Bitcoin Dominance (BTC.D) chart, which monitors the percentage of the total crypto market cap held by Bitcoin, currently stands at 59%. This surge in BTC dominance suggests that altcoins are losing value at a faster rate than Bitcoin, further supporting the Glassnode co-founders’ cautionary outlook on the altcoin market.
In terms of Bitcoin’s own performance, Glassnode executives note that long-term holders are selling off their holdings while short-term holders are stepping in to take their place. Despite this shift in ownership, whales are quietly accumulating Bitcoin, miners are remaining neutral, and selling pressure is being absorbed by new investors entering the market.
As of the time of writing, Bitcoin is priced at $97,246, further emphasizing the uncertainty surrounding the cryptocurrency market. With these developments in mind, it is crucial for investors to stay informed and monitor price action closely to make informed decisions.
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