Saturday, May 15, 2021

When altseason? Here’s why Bitcoin is leaving major altcoins like Ethereum behind

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Ether (ETH), the native cryptocurrency of the Ethereum blockchain, has been lagging behind Bitcoin (BTC). Traditionally, when BTC surges, altcoins are likely to rally with bigger upside worth actions.

This time, Bitcoin has been clearly outperforming the altcoin market, notably in December. BTC market cap dominance has not too long ago risen to a one-year excessive of round 70%, largely due to the big sell-off in XRP previously week. 

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BTC/USD vs. ETH/BTC (yellow), LTC/BTC (orange), XRP/BTC (blue) 1-day candle chart (Bitstamp). Supply: Tradingview

The distinction within the worth discovery of Bitcoin

The distinction between the present worth development of Bitcoin and former bull cycles in 2018 and 2019 is that BTC has entered worth discovery.

Merely put, worth discovery is when an asset’s worth surpasses the earlier excessive and retains going into uncharted territory. Altcoins normally develop into stagnant when Bitcoin enters price discovery as a result of BTC sucks up the amount from the altcoin market.