Bitcoin drops by 6%, but alternative cryptocurrencies shine
By
March 20, 2024
Currently, Bitcoin is down by 5.86% at $63,419, reaching a low of $62,966, while ether also dropped by 6.39% to $3,283.
Despite this drop, Bitcoin has seen a 52% increase in value since the beginning of the year, as more investors turn to US exchange-traded funds backed by actual bitcoin holdings.
The recent price peak of nearly $74,000 last Thursday prompted some investors to take profits, especially following indications from US data releases suggesting the Federal Reserve might not reduce interest rates as much as expected this year.
However, other cryptocurrencies have not fared as poorly overall. On Tuesday, Bitcoin experienced a decline of up to 6.5%, marking its largest single-day drop in two weeks, alongside a sell-off affecting cryptocurrencies and other risky assets like stocks.
Over the past week, Bitcoin has fallen by almost 9%, marking its biggest weekly decline since last September, while ether dropped by 13% after an upgrade to the ethereum network.
However, the broader cryptocurrency market has not experienced such significant declines. Other cryptocurrencies, known as “altcoins,” have seen their own inflows. For instance, the sol token on the solana network surged by 19% in the past week, while avalanche’s avax coin rose by 17%, according to Coingecko. Analysts at Bitfinex exchange anticipate a period of market adjustment as investors strive for balance amid rising investments in spot bitcoin ETFs, following Bitcoin’s recent record high and subsequent correction.
