Altcoins Show Resilience Despite Bitcoin’s Downturn: Bitfinex Reports
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Altcoins have shown resilience amid Bitcoin’s recent correction, with analysts at the Bitfinex crypto exchange noting approximately a 12.5% downturn in the past week.
As per the latest Bitfinex Alpha report, the resilience of the altcoin market is evident in the Total3 index, which hit a new cycle-high market capitalization of $788 billion on March 14. Despite a 14% decrease due to the broader market correction, the index’s decline is less than that of BTC in absolute terms.
Altcoins Demonstrate Exceptional Resilience
The Total3 index monitors the price performance of all crypto assets except BTC and Ether (ETH). Its latest cycle peak marks a 74.23% increase from its highest point during the bear market, falling just 6.5% short of the April 2022 record of $837.5 billion.
Bitfinex has noted that this trend reflects significant growth in altcoin investment and a diversifying landscape in the crypto market. Should the Total3 index surpass its all-time high of $837.5 billion, altcoins are poised to enter a phase of heightened investor enthusiasm and substantial gains, known as the mania phase.
This could result in exponential growth in altcoin valuations and investor interest.Despite impressive growth among altcoins, ETH has not experienced substantial gains following the Dencun upgrade on March 13.
Analysts suggest that the upgrade did not provide a compelling narrative to drive the cryptocurrency’s price higher, especially amidst strong performances from most altcoins.
As of press time, ETH/BTC prices had approached their bear market low of 0.049 BTC, a level assessed on January 9, just prior to the launch of spot Bitcoin exchange-traded funds (ETFs).
However, on-chain metrics indicate a bullish outlook for ETH due to the strong performance of other Ethereum-based altcoin projects and the robust support for ETH/BTC at its present level.
Stability Seen in Bitcoin ETF Inflows
On the flip side, Bitcoin has shed almost all of its gains from the first two weeks of March. Recent data from CoinGecko reveals that BTC has plunged over 7% in the past 24 hours, hovering at around $63,100.
Bitfinex highlights that this 12.5% decline represents the asset’s second-largest drop since the approval of spot Bitcoin ETFs, with the largest being a one-day decrease of 15%.
Meanwhile, there has been a recent stabilization in Bitcoin ETF inflows, indicating a balance in investment activity.
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