- The altcoin market cap is at a healthy level, the next bull run eyes new all-time highs.
- Altcoins such as Ethereum, Ripple, and Litecoin need to decouple from Bitcoin for an independent altseason.
The cryptocurrency market capitalization recently crossed the $1 trillion level for the first time in history. However, the market value has dived to the current $910 billion following the massive retracement in Bitcoin price from highs above $40,000 to intraday lows of $33,344.
While Bitcoin takes up the larger chunk of the market value, altcoins have also performed relatively well. Notably, Bitcoin's dominance has been maintained under 70%. At the time of writing, altcoin's market value stands at $280 billion, leaving Bitcoin with the larger $628 billion.
Altcoin market capitalization still impressive
During the ongoing bull run, the altcoin initial impulse wave hit $320 billion. A retreat has been embraced, but if the market value is to hold above $225 billion, the next bull cycle will likely elevate the altcoin market capitalization nearer to the new all-time highs.
Altcoin market cap
Altcoins, especially the major ones like Ethereum, Ripple, and Litecoin, is still massively correlated to Bitcoin. Over the last 24 hours, Bitcoin has plunged, losing nearly 20% of its value following a rejection from $40,000.
Similarly, Ethereum tumbled in tandem with Bitcoin losing over 20% of its value to exchange hands at $1,040. Consequently, Ripple is down 25% and is currently trading at $0.26, while Litecoin has dropped to $136 on losing 25% of its value.
This proves the altcoins' correlation to Bitcoin is perhaps due to Bitcoin's enormous market share. Therefore, the altcoin season is possible, but investors have to pay more attention to the tokens, which could diversify their investments. Breaking from Bitcoin will allow the tokens to chart their path while ignoring Bitcoin swings (consider the recent volatility to $42,000 and back to $33,000).
According to a famous cryptocurrency trader, NebraskanGooner, it is essential to keep in mind possible technical corrections, conceivably sharp ones, before the altcoin season fully kicks in.
Moreover, it may not be wise to go all-in on any entry because, as an investor, you need some extra funds to add on a dip. On the other hand, adding more during confirmed breakouts tends to yield fast and stress-free gains.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.