Wednesday, June 16, 2021

When altseason? Here’s why Bitcoin is leaving major altcoins like Ethereum behind

Ether (ETH), the native cryptocurrency of the Ethereum blockchain, has been lagging behind Bitcoin (BTC). Traditionally, when BTC surges, altcoins are inclined to rally with bigger upside worth actions.

This time, Bitcoin has been clearly outperforming the altcoin market, notably in December. BTC market cap dominance has just lately risen to a one-year excessive of round 70%, largely due to the big sell-off in XRP up to now week. 

BTC/USD vs. ETH/BTC (yellow), LTC/BTC (orange), XRP/BTC (blue) 1-day candle chart (Bitstamp). Supply: Tradingview

The distinction within the worth discovery of Bitcoin

The distinction between the present worth pattern of Bitcoin and former bull cycles in 2018 and 2019 is that BTC has entered worth discovery.

Merely put, worth discovery is when an asset’s worth surpasses the earlier excessive and retains going into uncharted territory. Altcoins often develop into stagnant when Bitcoin enters price discovery as a result of BTC sucks up the quantity from the altcoin market.