• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

State of the Cryptocurrency Market and Altcoin-Bitcoin Correlation Analysis

user avatar

by Giorgi Kostiuk

a year ago

  1. General Overview of the Cryptocurrency Market
  2. Historical Altcoin-Bitcoin Correlation
  3. Impact of Correlation Deviations on the Market


    4. Analysts note the growing dependence of the cryptocurrency market on the relationship between altcoins and Bitcoin. This article presents an analysis of the current state of the market and historical examples of how these correlations have influenced crypto asset prices.

    General Overview of the Cryptocurrency Market

    The current state of the cryptocurrency market reflects overall investor confidence in these assets. It is important to note a correlation between altcoins and Bitcoin trends. Currently, BNT, AXS, LINK, ALGO, and ADA are showing the highest correlation with Bitcoin.

    Historical Altcoin-Bitcoin Correlation

    Cryptocurrency analyst Joao Wedson believes the current market health is closely tied to the relationship between Bitcoin and altcoins. When altcoins follow Bitcoin’s trends, it suggests strong belief in the market’s stability. Wedson pointed to historical instances when a deviation in the altcoin-Bitcoin correlation preceded a wholesale decline in crypto prices.

    Joao Wedson noted Bitcoin and other cryptocurrencies declined in January, June, and July 2024 after a deviation in the trend pattern between altcoins and Bitcoin.

    Impact of Correlation Deviations on the Market

    Meanwhile, Wedson explained that altcoins outperforming Bitcoin trigger deviations in the correlation between the crypto categories. According to him, investors consider such negative correlations a warning sign for BTC, which could trigger an overall decline in the crypto market, as seen in the past.

    Exploring the connection between Bitcoin and altcoins provides insight into the current state of the cryptocurrency market. Investors should closely monitor the correlation of these assets to recognize potential threats and market changes in a timely manner.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Annemarie Tierney Appointed to CEA Industries Board to Enhance Governance

chest

Annemarie Tierney has been appointed to the board of CEA Industries to enhance governance and regulatory compliance.

user avatarDavid Robinson

Positive Community Response to Bitcoin Payment Integration

chest

Positive community sentiment and growing interest from merchants regarding Bitcoin payments.

user avatarRajesh Kumar

Binance Coin Faces Significant Price Decline Amid Falling BSC Transaction Data

chest

Binance Coin (BNB) is experiencing a steep price decline of nearly 40% due to a 75% drop in Binance Smart Chain (BSC) transaction volume over the past month.

user avatarAndrew Smith

XRP and Cardano: Key Players in the Evolving Crypto Landscape

chest

XRP and Cardano continue to attract attention from traders seeking stability and long-term growth.

user avatarZainab Kamara

LTC Trading Near Support Zone Amidst Weak Momentum

chest

LTC is trading near established support with weak momentum and shallow recovery attempts.

user avatarJacob Williams

Traders Shift Focus to Promising Early-Stage Crypto Coins

chest

Traders are shifting focus from large-cap cryptocurrencies to early-stage projects with breakout potential.

user avatarAyman Ben Youssef

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.