The founders of the crypto analytics startup Glassnode have warned of a potential loss of positive cryptocurrency momentum following last week's market collapse.
Cryptocurrency Market Conditions
Jan Happel and Yann Allemann, known as Negentropic on the social networking site X, inform their 63,400 followers that the 'altcoin season,' which began in late November, may abruptly end after substantial pullbacks last week.
Bitcoin Dominance and Its Impact
According to Glassnode founders, Bitcoin is strengthening its position. The Bitcoin Dominance (BTC.D) chart shows how much BTC accounts for in the entire crypto market capitalization. In the present market conditions, a rising BTC.D indicates that altcoins are losing value quicker than Bitcoin. At the time of writing, BTC.D was trading at 59%.
Actions amid Current Situation
Glassnode founders note that long-term investors are actively selling their positions, while new players fill in the gaps. Institutional investors are accumulating bitcoins, miners remain neutral, and sellers are reshaping their strategy. New entrants are absorbing the sales.
Glassnode emphasizes that significant changes are occurring in the cryptocurrency market, and the shift towards Bitcoin may greatly affect the further development of altcoins.
