[ad_1]
Currently, due to the surge in trading of alternative cryptocurrencies, the altcoin market dominance has reached 50%, which indicates the percentage of altcoins (virtual currencies other than Bitcoin) in the cryptocurrency market. While the entire community is excited about the trend, some experts are already predicting that it could lead to collapse in the near future.
WARNING: Crash is imminent!
According to J.A. Maartuncrypto analyst and community manager of CryptoQuant, the fact that altcoin trading dominance has reached 50% is very worrying. See Maartun’s chart below.
Marten backs up his claim that, in the past, when altcoins’ share of trading volume exceeded 50%, large drops in BTC’s price often led to similar drops in value in other markets. That is why I have presented the chart above.
The chart shows that there will be a period of increasing dominance for altcoins before the price drop in November 2022, with alternative cryptocurrencies accounting for 55% of total trading volume.
This is despite evidence of expected cryptocurrency investments in 2023, with market sentiment already negative and many investors hesitant to engage in riskier assets. occurred in time.
Conclusion
US Consumer Price Index (CPI) data is set to be released on January 12, and some experts expect it to show rising inflation. In this case, the Federal Reserve may continue to raise interest rates, previously declining cryptocurrency market capitalization.
A future interest rate hike coupled with the current negative market attitude, possible bankruptcy of DCG, and reduced market liquidity could lead to a further collapse not only of the altcoin market, but of the cryptocurrency market as a whole. .
[ad_2]
Source link
