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Bitcoin and crypto collapse: what to do now?
By Daniele Corno
The Bull Market is never all sunshine and roses: the cryptocurrency crash has arrived after RECORD months, here's what's going on
The market is being dictated by bitcoin
Many times we have heard the phrase, “Investing in altcoin is equivalent to buying leveraged Bitcoin.” What can we say, it is moments like these that support this thesis.
A Friday that consolidates a week of suffering in the crypto market, with Bitcoin losing 10 thousand points from the $104,000 level at the beginning of the week. The price of Bitcoin, from its November lows to its December 17 highs, rose from $67,000 to $108,000, a net increase of more than 60 percent.
After such a rally it is also a foregone conclusion, although talk of hindsight is easy, to expect profit-taking by investors, but not only that. As in every phase of EUFORIA, the market fills up with leveraged long positions , which during growth increase the speed in price growth. However, the excess leverage is as always cleaned up by the market; the result? Bitcoin in the week loses 10 percent.
Ethereum remains in pain
The suffering in the altcoin market starts with Ethereum. Indeed, the price of ETH has been perpetually suffering against Bitcoin since as far back as December 2021, in a trend that does not seem to want to reverse.
The current week is further confirmation of this, with Ethereum standing at a loss of nearly 1,000 points from early week levels. A -20 percent on the week, equal to twice the percentage movement of Bitcoin, which once again puts the ETH/BTC exchange rate in trouble , close to the period low in the 0.032 area.
An Oblivion Week for Altcoins
While Bitcoin suffers and Ethereum follows, the situation is slightly different for altcoins.
In fact, over the past week, almost all altcoins on the market have seen double-digit percentage losses, losing much of the previous month’s gains.
Among the most capitalized ones, the most impactful loss is related to Solana which, with a price close to $180 is back to the prices of early November, after Donald Trump‘s victory .
Next, currencies such as AVAX, TON, DOGE, OP, ADA, DOT, are all in the range of -30% on the week.
Bottom line
As the Bitcoin Dominance chart shows us, the market today is focused solely on the number one cryptocurrency. With value returning to the 60% area, the institutional and government interest that has come in over the past year has created further distance between Bitcoin and Altcoin.
