It is very usual for numerous digital currencies, initial coin offerings, and tokens to confer a similar price trail in the cryptocurrency industry. For example, the majority of the altcoins confer a similar pattern as BTC and ether. For instance, if BTC surge in the marketplace, altcoins will likely increase market value. And when the digital coin BTC confronts a price slump, altcoins also undergo a market value slump most of the time.
The beginning of 2022 has been miserable and chaotic for the cryptocurrency industry, especially altcoins. If you are interested in bitcoin trading, visit the Oil Trading bot to acquire an utter guide to crypto trading. Undeniably bitcoin is also declining in terms of market value, and it was about to break its floor price, but in contrast to altcoins, bitcoin is at a much safer place right now. Altcoins like Ether and Binance coins have slumped by 30% in the last few weeks.
In short, altcoins are intensely suffering from cryptocurrency market downfall, whereas bitcoin is still recovering. You might wonder why altcoins are failing in front of bitcoin. Let’s find out why bitcoin is still stronger than altcoins despite an intense downfall in the cryptocurrency market.
Bitcoin Exchange-traded fund News
Bitcoin is governing more than 45% of the cryptocurrency marketplace, and it seems like this coin is the alone dominator in terms of market cap. A significant highlight in this industry exerting a magnificent impact on the market value of altcoins overall is the bitcoin exchange-traded fund. The foremost bitcoin exchange-traded fund is all set to come into live-action.
The news of exchange-traded funds coming into live-action only for bitcoin has been impacting the spot price of other altcoins for a very long time. So you might wonder how exchange-traded funds will revolutionize cryptocurrency space. Think of ETFs as the most straightforward key to find while investing in bitcoin; shortly after an exchange-traded fund’s arrival, investing in this virtual coin will be a piece of cake for the investors.
Undeniably, there are numerous secure cryptocurrency exchanges, but exchange-traded funds will skyrocket the authenticity of bitcoin investment progression. After the security exchange commission announcement, altcoin investors sold their holdings; however, bitcoin retained its floor price.
Bitcoin’s Stability!
Altcoins seem to be more intensely volatile than the legendary cryptocurrency bitcoin. Undeniably, bitcoin itself is utterly volatile, but compared to altcoins, the volatility extent of bitcoin is just nominal.
Stability rendered by this virtual coin ranks it in the category of an original cryptocurrency. Many bitcoin investors doubt the authenticity of altcoins and paper hands whenever they experience a slump in the market value and sell their holding. People believe that bitcoin will offer a massive return on their invested amount even if it experiences an intense downfall.
Geopolitical Concerns!
One of the significant reasons for bitcoin being utterly potential compared to diversified cryptocurrencies is geopolitical concerns. Analysts talk about the potential of different cryptocurrencies whenever a financial meltdown occurs.
So far, bitcoin has survived each financial meltdown with utter grace compared to other digital coins. Each time bitcoin forms a higher support price, the floor price of this coin is nearly $35000. However, the geopolitical concerns regarding digital currencies are uncertain, and nobody is familiar with what will happen to altcoins in the future.
As per reports, only a few of the altcoins will survive shortly as reputed projects like Ethereum have acquired the trust of innocent investors. However, people fail to trust altcoins because of the frequent arrival of unauthentic projects. A widespread scam related to altcoins and new flanged projects is decentralized rug pull. In rug pull, many seasoned and innocent investors have lost their money.
Undeniably bitcoin seems to be providing lesser returns than other altcoins, but it is very authentic and never fails to provide some amount of return. The unpredictability of altcoins is making them fall even faster than bitcoin. Another stable form of altcoin is Stablecoin, and this category of altcoin is pretty safe right now. Undeniable one cannot use Stablecoin for the trading scenarios, but as a service of the medium of exchange, these are entirely suitable with nearly no volatility.
The portion mentioned above defines why bitcoin is still standing its ground, whereas altcoins are scattering like sand.
