Altcoins are climbing out of the pit

Down the chain, US stock market dynamics now determine corporate investor sentiment towards Bitcoin and Ether. From the top-down, this sentiment then spreads down to altcoins.

But since late last year, there has been a continuing trend that even bitcoin’s calming is enough for altcoins to return to growth and outperform the first cryptocurrency.

In the last 24 hours, the entire crypto market has added 3.3%, while Ether has gained 4.7% versus Bitcoin’s 2.4%. Ether has strengthened by 15% in the last seven days, returning to this month’s highs and trying to climb above the bottom levels at the end of September 2021.

The cryptocurrency market capitalisation excluding Bitcoin has been hovering around the $1 trillion mark for over a week and approached the upper end of that range on Friday morning. The reduction in volatility in Bitcoin allows for an optimistic outlook on altcoins. At least in the short term.

An essential boundary for Ether will be the $3K mark. A return in the price above this level could further encourage buyers and reject the idea of a crypto-winter following the example of 2018.

Solana is showing signs of coming out of the hole it fell into at the end of January. The $90 mark has attracted sufficient buyer demand. However, it will be premature to discuss a sustained recovery to the upside, only a stabilisation after the collapse.

A BTCUSD consolidation above $40k and Ethereum above $3k would shift the altcoin recovery to a new speed and restart the process of BTC share contraction in the entire market.

The FxPro Analyst Team