Hello Hive’s Friends,
Whatever happens in this changing world happens for our benefit or disadvantage. I want to explain how much difference there is between BTC and Altcoins in the current market! However, BTC is still above 84k while Altcoins are down by more than half.
https://images.app.goo.gl/2p9WfnR19JM9wN6E8.Source
The cryptocurrency market is constantly changing, and as we approach 2025, we are seeing a strange trend. Bitcoin (BTC) is still trading above $84,000, but most Altcoins have fallen by more than half of their peak prices. What is the reason for this difference? I will try to explain as best I can.
Bitcoin (BTC) is the first and most established cryptocurrency. Its market capital and acceptance is much higher than that of altcoins. It is considered as digital gold and many organizations hold it in the long run. On the other hand, although altcoins (such as Hive, Eth, ADA, Sol, Meme Coins) are based on new technologies, their sustainability in the market is still questionable.
Why is BTC trending upwards and altcoins falling?
Why have most Altcoins lost so much value while Bitcoin maintains its strong position in the current market? Some of the reasons for this seem to be that large institutions and ETFs (Exchange-Traded Funds) are now investing in BTC, but their interest in Altcoins is low. Institutions like BlackRock and Fidelity are only accepting Bitcoin as a legitimate investment vehicle, not Altcoins.
I think another problem is the oversupply and liquidity crisis in the altcoin market.
Investor confidence has waned in the altcoin market due to the lack of additional token releases and ecosystem growth. Many altcoins have yet to recover from the bull market of 2021-22.
Bitcoin Dominance (BTC.D) is now between 52%-54%, which shows that the market has high confidence in BTC.
When there is uncertainty in the crypto market, investors sell Altcoins and return to BTC.
Do you think Altcoins will recover in the future?
I think if Bitcoin price continues to rise and new investors enter the market, Altcoins can recover. But right now, most of the money in the market is BTC-centric.
Some potential Altcoins that could do well in the future:
• Ethereum (ETH) – ETF could actually be a big bull
• Hive is doing much better in terms of price
• Solana (SOL) – Ecosystem is getting stronger
• Cardano (ADA) – Price is down a lot, but there is a chance of recovery
• Meme Coins (DOGE, SHIB, WIF) – New ATH is possible if there is social hype.