The cryptocurrency market goes through spells of volatility where the overall market either follows a bullish or a bearish pattern. It is just the normal routine for Bitcoin and other altcoins to follow different market trends. However, the patterns of Bitcoin have a very strong influence on the performance of the rest of the market.
The cryptocurrency market is booming recently, however, Bitcoin went into a short-lived correction on Thursday. The correction proved to be a major force for Bitcoin, as it staged a solid comeback and also helped other altcoins to turn green. This showed that the bulls are currently strong, and that new records are on the way for Bitcoin.
The dominance of Bitcoin has also increased but it is now stagnant at a respectable value, showing that there is a lot of room for improvement of alternative cryptocurrencies as well.
The growing positivity around major coins and tokens
The altcoin market has shown some positive signs towards the end of this week. Several coins are following the dominating Bitcoin, as the demand for altcoins is growing significantly.
The retail sector is showing more interest in these altcoins, as they believe it appears to be a more profitable and psychologically comforting investment. This is mainly because altcoins have minimal prices and they have a higher growth potential than Bitcoin.
Also, there are some other developments that have induced positivity in the cryptocurrency market. Reports have shown that the hash rate for Bitcoin is also recovering after the Chinese ban, and that the US is becoming the global leader in Bitcoin’s hash rate network by holding 35.4% of the total computing capacity.
The growing participation of the US in the crypto market is a major development as it promises more stability and predictability for the sector that has historically suffered from the Chinese laws and regulations.
Bitcoin has a relatively small market size, as crypto whales are believed to be stocking up on the leading crypto token. However, it is believed to hedge against inflation risks by the retail sector. On the other hand, coins like DOT and SHIB have risen up the charts in terms of valuation, trading volume, and market cap.
This shows a lot of potential for the investing sector who are finally being rewarded for holding on to these altcoins. The coming few weeks might show a more decisive pattern in the market, however, the experts are quite bullish on the overall market outlook.