As purchasers remain on the sidelines, Bitcoin, the flagship cryptocurrency fell below $30K in the early hours of Saturday. The cryptocurrency has gained a little ground in the last week, but it has been unable to outperform the majority of alternative cryptocurrencies (altcoins).
Despite failing to breach the falling channel barrier at $2,000 on May 31, the leading altcoin, Ether, remains negative. This three-week price pattern could indicate that a retest of the $1,700 support is in the works.
With the exception of Axie Infinity, Chiliz, and Helium, all other major crypto tokens were trading at a discount. In the majority of cases, however, the losses were limited. Internet computer was among the worst performers, dropping 13%, while Solana, Tron declined 9%.
What you should know
- Bitcoin’s resiliency in comparison to other cryptocurrencies may be explained by the fact that investors in the space consider BTC to be the most stable digital asset at the moment.
- Bitcoin critics can still refer to its extreme volatility, but it is still more established than some other tokens.
- While the bear market is in effect, investors who are concerned about newer, smaller cryptocurrencies may transfer their cash from altcoins to the flagship crypto asset.
- The bitcoin Fear & Greed Index has dropped in recent days, indicating that crypto traders’ sentiment is still pessimistic. The indicator sank deeper into “severe dread” area, akin to what happened in January of this year, just before BTC’s price began to rise.
- Nonetheless, technical signs show that bitcoin’s upside is limited, notably near its 50-day moving average, which is currently $34K.
Gold was also lower on Friday, and is down 5% in the last three months, compared to a 25% drop in Bitcoin and a 4% drop in the S&P 500.
Some crypto traders have reduced their risk exposure so far. Because of their higher risk profile, cryptocurrencies typically drop more than bitcoin during bear markets. As a result, during weak markets, bitcoin’s market value grows in comparison to the whole crypto market cap (dominance ratio).
