Why are the prices of alternative currencies rising now?
Some reasons for the rise:
1 The dominance of Bitcoin has decreased
The relationship is inverse; as the dominance decreases, the values of alternative digital currencies increase.
Currently, its dominance has dropped from 66%-67% to 60%-61%, which means that liquidity from Bitcoin is moving to other currencies.
Large flows towards Altcoins and ETH
Ethereum witnessed an increase of about +40% during July, reaching a level of ~3,600 dollars, with approximately 2 billion dollars entering its ETFs since the beginning of the month.
Institutions are shifting from Bitcoin to Ethereum and reallocating some of their reserves towards currencies capable of generating returns from staking and smart contracts.
This indicates the beginning of the Altcoin Season.
3 FOMO (Fear of Missing Out): This is the fear of missing opportunities, leading investors—whether they are investors or traders—to enter a very high market late without research or plans. They then lose, fearing missed opportunities and seeing others making large profits. Its causes include:
1 Social media
2 Psychological factors
3 Direct price increases
4 ETF Funds:
We have seen many companies and large investors entering ETF funds with billions.
Write in the comments what you think are also the reasons for the increases
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