With the strength of Ethereum, the separation of the altcoin market from Bitcoin has pleased investors.
Despite the recent high volatility in BTC, the performance of major altcoins BTCIt follows a more stable course than BitcoinWhile Bitcoin fell more than 5 percent from its recent record high of $104,000 to below $100,000, leading altcoins like Ethereum and Solana were down just 1 percent. There was a decrease.
The Altcoin/Bitcoin Correlation Is Weakening
Andrey Dragoš, head of Bitwise Europe research, said that altcoins have outperformed BTC since the US election in early November. “According to our altseason index, 85 percent of the altcoins we follow have outperformed Bitcoin in the past 30 days,” Dragosch said, adding that altcoin investors are even more excited.
Dragosh added that the correlation between altcoins and Bitcoin has decreased, giving altcoins higher return potential. “The fact that altcoins are less correlated than BTC gives investors more opportunities,” said Dragoš, noting that BTC’s market dominance has clearly diminished for the first time since March 2024.
Volatility in BTC may increase.
After crossing $103,000, Bitcoin experienced severe volatility, falling to $92,000 within 24 hours and then stabilizing around $98,000. The volatility in question resulted in a loss of $487 million in BTC and $893 million in the total crypto market. “Volatility is expected to remain high in the coming weeks,” said BRN analyst Valentin Fournier, adding that the US jobs report could add to market volatility.
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
