Bitcoin price hitting all-time high triggers market crash, but altcoins could wake up soon

Bitcoin (BTC) price hit a new all-time high at $69,324 on Tuesday during the late hours of the Asian session. However, a correction came almost immediately amid triggered sell orders, and the sentiment spread among meme coins.

Also Read: Bitcoin price sets new ATH in USD for the first time in three years

Bitcoin price peaks but triggers meme coin market crash

Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE) and Bonk Inu (BONK) prices, among other meme coins, have plummeted with some posting double-digit losses. It comes amid a strong correlation with BTC among altcoins.

Nevertheless, trader and online analyst @Cryptomanran had warned on X, “Memes are an amazing trade but remember to take profits kids and put them into protocols that will make a difference in 5 years!” This is true considering the sector’s highly speculative nature with little usability, which makes it important to sell in time.

Nevertheless, renowned analyst @HsakaTrades believes that the ongoing downtrend seen with Bitcoin price is not natural, citing “spoofy sell orders” among whales. According to the analyst, smart money is at play and looking to buy low.

Nevertheless, liquidity appears to be rotating into quality altcoins with strong fundamentals as the likes of Ethereum (ETH) and Solana (SOL) are now waking up. They stand as outliers while most altcoins flash red. 

For Ethereum, the sturdy outlook is inspired by the Dencun upgrade, due on March 13. This event introduces several Ethereum Improvement Proposals (EIPs) such as EIP-4844 which allows proto-Danksharding, a feature aimed at reducing layer-2 transaction fees.For Solana, the network’s affordable gas fees relative to industry peer Ethereum is likely to inspire optimism.

Will meme coin rotation kick-start altcoin rally?

With the recent huge gains noted among meme coins, investors are likely going to pay attention to other altcoins, including ETH and SOL, which could cause a rally in these cryptocurrencies as well. If this development is followed by altcoin profit rotation, AI coins could, in general, see gains by association.

For the layperson, altcoin profit rotation in the cryptocurrency ecosystem refers to a phenomenon where investors shift their focus and funds between different altcoins to maximize profits. This rotation occurs as traders seek opportunities in various altcoins rather than solely focusing on Bitcoin. The profits from one crypto usually rotate into another crypto, which causes successive rallies in different sectors of altcoins. 

Also Read: Ethereum Price Prediction: The long game could see ETH climb 30% 

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