According to a recent report from Alphractal, altcoins have begun to show independent movement from Bitcoin, which may indicate upcoming volatility in the market.
Altcoins and Bitcoin: A New Dynamic
The Alphractal report vividly demonstrates the growing disconnect between altcoins and Bitcoin. The analysis shows that some altcoins have begun to act independently, even moving in the opposite direction to BTC.
Market Impact
Alphractal CEO Joao Wedson notes that Bitcoin’s deteriorating connection with traditional financial metrics, such as the CBOE Volatility Index (VIX), could signal potential volatility in the market. When the VIX is low, and BTC is acting independently of stock indexes, it sets the stage for significant price movements.
Potential Consequences for Cryptocurrency
Alphractal warns that despite attractive altcoin returns, there may be something larger brewing beneath the surface—divergence and instability, which could potentially lead to major market corrections.
Thus, the decoupling between altcoins and Bitcoin raises concerns about future instability in the cryptocurrency market, and it's crucial for investors to stay vigilant.
