Bitcoin (BTC) price continues to recover from the correction and has already reached $ 55K.Despite the recent decline in Bitcoin prices, the overall outlook for the cryptocurrency market is optimistic as signs of sustained mass adoption appear daily.
Moreover, the decline in the Bitcoin rate last week allowed altcoins to come out ahead and gain market share. Moreover, many coins have reached new all-time highs.
For example, the cost of Ethereum on the Binance crypto exchange reached $ 2.66 thousand, updating the historical maximum. The last time altcoin updated the maximum value on April 22 at $ 2.64 thousand. The very next day, Ethereum quotes fell by 18%. This happened against the backdrop of a fall in the Bitcoin rate, which fell by 11% on the same day. In five days, the largest altcoin in terms of capitalization grew by 26%.
Serum (SRM) price has also skyrocketed 127% over the past two days, from a $ 5 low on April 24 to a new all-time high of $ 11.47 on April 26. Serum’s main growth driver is the growing popularity of the Solana blockchain, which also rose to a new record on April 26 as new users and projects continue to explore what the network has to offer.
The market stabilized naturally. In the near future, their cost may rise by a few more percent, but then the growth will stop. Analysts of cryptocurrency funds are sure of this.
2021 will be the year of altcoins?
The situation in which altcoins outpace bitcoin in terms of profitability on the crypto market is called the altcoin season. In 2017, while the first cryptocurrency showed a 2,000% return over the year, assets like XRP were up 56,500%. According to the SecretsOfCrypto analyst’s description of market cycles, funds begin to flow into altcoins when Bitcoin stops active growth and passes the stage of consolidation.
This is exactly what happened in the last month.
Today, you can hear from all sides: 2021 will be the year of altcoins. This is due to the importance of Bitcoin, the relationship of coins with the first cryptocurrency and trends.
When looking at cryptocurrencies in the top 100, it should not be overlooked that cryptocurrencies associated with Ethereum and DeFi have grown significantly.
Experts believe that Bitcoin can only double in value over the next few years. Whereas with altcoins, they can increase by five or ten times in a year or even up to six months.
The market has moved to the stage when any altcoin, regardless of fundamental factors, can demonstrate an explosive growth in quotes. This is due to the fact that investors are looking for new opportunities to earn money and buying up assets with low capitalization. As a result, this has a positive impact on the value of such assets.
However, predicting the behavior of altcoins is difficult. Their future is influenced not only by interest in the crypto market in general, but also by the actions of the development team, problems with regulators. Yet Bitcoin has been and remains the locomotive of the cryptocurrency market. It accounts for more than 50% of the capitalization of the entire cryptocurrency market, and it determines the attitude towards the industry as a whole.