Altcoins Crash, What Happened and Why?

Bittime - Altcoins are crashing, what's going on, and why? The condition of altcoins which has recently fallen raises a big question mark.

The decline in Bitcoin has an impact on the decline in the altcoin trend . Let's find out what's going on and why are altcoins crashing?

Understanding Altcoin Crashes

What seemed like a promising week for crypto suddenly turned into a nightmare as Bitcoin (BTC) dropped to its lowest price in four weeks, dropping more than 2% to $65,100 during the US trading session from around $67,000. 

In the last seven days, BTC recorded a decline of 7.5%. 

When the price of Bitcoin falls, practically other crypto assets , known as altcoins, often follow suit.

Analyzing the event, Crypto analyst Michaël van de Poppe, known as “Crypto Michaël,” has examined the altcoin price drop and provided insight into the future of the crypto market. 

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He noted that major altcoins have dropped more than 40% in the past two weeks, with on-chain altcoins down more than 70%. 

He also highlighted the impact of Bitcoin's dominance on altcoins, indicating that a reversal of Bitcoin's dominance might lead to a new altcoin rally.

Many people in the crypto world wonder why altcoins have experienced such a significant decline.

Check Today's Crypto Market:

Uncertainty Looms Over Ethereum ETFs

One of the main factors in altcoins crashing at the moment, according to Michaël, is the uncertainty regarding spot Ethereum ETFs in the US. 

Despite being approved by the SEC, this ETF is not yet registered, which is causing confusion and affecting the overall market sentiment. 

Michaël explained that the approval process consists of two stages, namely form 19b-4 (which covers technical details and SEC compliance) and form S1 (which relates to listing on an exchange). 

Also Read: Potential Delisting! Crypto Assets in South Korea Face Strict Evaluation

This delay in listing has contributed to downward pressure on the market.

Michaël believes that once an Ethereum ETF is listed, Ethereum can be considered a commodity similar to Bitcoin. 

This recognition could attract greater institutional investment interest and increase broader acceptance of Ethereum and other cryptocurrencies.

Macroeconomic Factors and Market Impact

Michaël noted that lower-than-expected US inflation initially suggested a potential halt in the Fed's interest rate hikes, but the Fed's hawkish stance maintained uncertainty. 

Altcoins thrive in a low interest rate and high liquidity environment, which they currently lack. 

The strong dollar, supported by the ECB's recent rate cut, is also putting pressure on the crypto market.

Check Crypto Prices Today:

Will There Be a Reversal?

Even though there is currently negative sentiment, there are signs of a potential rebound. Michaël is optimistic that there will be a market reversal in the next 1-2 weeks. 

He also emphasized the importance of Bitcoin's dominance over altcoins, as altcoins underperform due to their high dominance. 

A reversal of Bitcoin dominance could signal a new altcoin rally.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.