1. Why have altcoins fallen?

  • Impact $BTC : Altcoins often exhibit a strong correlation with Bitcoin. Over the weekend, the price of Bitcoin fell below the $100,000 mark, triggering a fall in the altcoin market. This correlation occurs because Bitcoin is the leading cryptocurrency, and fluctuations in its price tend to set the tone for the entire market.

  • #РинковіНастроїСьогодні : Global cryptocurrency market capitalization fell 0.65% to $3.63 trillion, with stablecoins dominating trading volume (92.61%). This indicates a shift to safer assets in uncertain times.

  • Bearish moment: Hourly charts for major altcoins have shown bearish trends, with declines ranging from 2% to 7%. This suggests that traders are cautious, perhaps due to external economic factors or profit-taking after the recent rally.

2. Current market conditions

  • Altcoin Performance: Major altcoins are down 2-5% in the last 24 hours. Some altcoins even experienced a sharp drop of 7%.

  • Trading volume: Despite the drop, cryptocurrency trading volume remains strong, reaching over $3.6 trillion. This indicates that market activity is still stable even if prices are falling.

  • Economic Events: The price of Bitcoin is trading around $100K ahead of key economic events that could affect market uncertainty.

3. What to expect next?

  • Potential Recovery: Historically, altcoins tend to recover after Bitcoin stabilizes or starts a new uptrend. If Bitcoin recovers and crosses the $100,000 mark again, altcoins may see a corresponding rally.

  • Altcoins Poised for Growth: Certain altcoins are expected to perform well in 2024, with some even reaching 4-digit price levels. This suggests that the current decline may be a temporary setback rather than a long-term trend.

  • Focus on fundamentals: Investors can shift their focus to altcoins with strong fundamentals, such as those in the $ETH Ethereum ecosystem or other innovative projects. For example, altcoins related to decentralized finance (#defi i) or artificial intelligence (#AI) may rekindle interest.

4. Key conclusions for investors

  • Short-Term Volatility: The market is currently experiencing short-term volatility, so it is imperative to remain patient and avoid panic selling.

  • Diversification: Diversifying your portfolio across different types of cryptocurrencies can help reduce risks during market downturns.

  • Bitcoin Monitoring: Keep an eye on #BTC price movements as they will likely dictate the direction of the altcoin market in the near future.

Let's summarize:

The recent decline in altcoin prices is primarily due to the fall in Bitcoin and overall market sentiment. However, with high trading volumes and optimism about the potential of certain altcoins in 2024, there is hope for a recovery. Investors should stay informed, focus on projects with strong fundamentals and be prepared for continued volatility in the short term.