Binance Research:
Bitcoin recovers from geopolitical shock, but altcoin season still far away
$BTC has regained the $107,000 level after a week of volatility due to tensions in the Middle East
In contrast, $ETH
performance remained weak and Bitcoin’s market dominance remained stable at around 66%
According to Binance Research, Bitcoin made a strong comeback after a decline of around 8.5% at the beginning of the week, while Ethereum fell 17% and partially recovered
A study by BlackRock has highlighted Bitcoin’s historical strength after geopolitical events, according to which Bitcoin gives an average return of 37% 60 days after such events, although this trend depends on global economic conditions
Altcoin season is delayed as the influx of new crypto tokens in the market has limited capital circulation
According to data from Doon Analytics, the number of unique crypto tokens on different blockchains has increased by almost tenfold in the last three years, which is affecting the distribution of investments.
Unlike previous periods, there is no clear theme or new trend in the current market, such as meme coins, Bitcoin Fi and Deepin, which are repetitions of previous trends.
Although artificial intelligence has gained attention, its impact on the crypto market has been limited.
A major reason for the decline in the value of the US dollar is former President Donald Trump's criticism of Federal Reserve Chairman Jerome Powell, which brought the value of the dollar to a three-year low.
Some Fed members are in favor of cutting interest rates, while Powell is taking a cautious approach.
This uncertainty has created a shift in traditional markets while strengthening crypto and risk assets.
The US 10-year Treasury bond The decline in yields and VIX has boosted the market's confidence,
Overall, Bitcoin has solidified its position as a macroeconomic hedge and the market is stabilizing,
However, investors are waiting for a major breakout in $ALT , economic data and central bank policies in the coming days will play a key role in whether the crypto market will grow under the leadership of Bitcoin or if altcoins will get a new impetus ....