Bitcoin price hitting all-time high triggers market crash, but altcoins could wake up soon
- Bitcoin price narrowly beat its $69,000 former peak on Tuesday.
- Meme coins are in a load-shedding exercise with Shiba Inu barely clinging to gains.
- The liquidity could rotate into quality altcoins with strong fundamentals.
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.
Dear noobs,
— Hsaka (@HsakaTrades) March 5, 2024
Bitcoin is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to "buy back lower". They are stealing your bags and will make you buy back at a higher price.
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.
let's face it, meme coins are just more fun on solana.
— 0xMQQ° (@0xMQQ) March 4, 2024
paying high gas for a swap is like, you are killing a game and you arrive at the boss room, then boom a full screen pop-up in your face saying you need to pay $69.99 to continue. it just kills the vibe.
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%
Read More: Three sectors that could thrive as 2024 bull market warms up
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
