Altcoins Crash Double Digits, Bitcoin Dominance Soars (Market Watch)

In the last 24 hours, the altcoin market has witnessed a substantial crash, with many cryptocurrencies experiencing a significant decline. However, amidst this turbulence, Bitcoin and Ethereum have displayed relative resilience. This article examines the discrepancy between the performance of these leading cryptocurrencies and the rest of the market.

Bitcoin Dominance and Its Implications:

Over the past day, Bitcoin’s dominance has surged to approximately 46%, according to data from CoinGecko. This metric, which measures Bitcoin’s market share relative to other cryptocurrencies, offers insights into their dynamics. A rising BTC dominance signifies that Bitcoin’s price is outperforming the altcoin market, providing a possible explanation for its resilience.

Altcoin Market Turmoil and Causes :

While Bitcoin and Ethereum weather the storm, altcoins like Cardano, Solana, and Polygon, among others, have suffered substantial losses, as illustrated in the heatmap. The plummeting prices can be attributed, in part, to the recent Securities and Exchange Commission (SEC) lawsuit against Coinbase, in which many altcoins were listed as securities. Robinhood, another major trading platform, has also announced plans to delist certain altcoins due to similar concerns.

Respite for Unaffected Cryptocurrencies

It is important to note that cryptocurrencies not included in the SEC’s claim have fared relatively better. For example, Ethereum’s ETH has experienced a modest 5% decrease, while Ripple’s XRP is down approximately 6%. Although these declines are significant, they pale compared to the substantial losses of altcoins like ADA, SOL, and MATIC, which have plummeted by over 20% in the same period.

The altcoin market has witnessed a major downturn in the past 24 hours, while Bitcoin and Ethereum have displayed resilience. The surge in Bitcoin’s dominance suggests that its price is outperforming altcoins. The SEC’s lawsuit against Coinbase and Robinhood’s delisting plans have contributed to the turmoil. Nevertheless, a few cryptocurrencies not implicated in the lawsuit have experienced less severe declines.

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