The crypto market has once again opened on a bearish note as Bitcoin price has slid under the $23,000 mark. Instead, altcoins like Ethereum, Binance Coin and Polkadot seem to be winning the race.
This indicates a changing market sentiment- investors seem to be losing their trust on bitcoin org bitcoin org Event OrganiserTechnologyPayment solution Followers : 0 View profile and are shifting their focus over to altcoins. It looks like BTC could be stripped off its crown.
The main cause of concern is that if the flagship currency continues this trend, there could be a retest of yearly lows and Bitcoin might be pulled down from 43% to the 30% level. This could prove to be an opportunity for altcoins to take the lead.
As per Arcane Research’s survey, altcoins are doing great in August. The chart below depicts the monthly performance for Large, Mid and Small Cap Indexes; it’s clear to see that Bitcoin is faring poorly in comparison.
The research firm also notes that Bitcoin’s dominance has seen a drop from June’s 47% to the present 40.5%.
Short-Term Pull For Crypto Market
Though the market sentiment is positive, most of the currencies are facing a downward pull, which could be the short-term effect of macro-economic factors that also includes the Fed Reserve’s rate hikes.
Tomorrow, August 11, the U.S federal reserve federal reserve Multinational Investment Bank Followers : 0 View profile (Fed) is set to reveal the Consumer Price Index (CPI) for the month of July. This will be used for the present inflation of the US dollar.
If July’s CPI data is on a positive note, then the Fed’s increasing interest rates might not be that strict. Either way, those numbers are likely to massively impact the crypto space.