The launch of Bitcoin ETFs has seen altcoins outperform Bitcoin, and analysts suggest this could happen more in the future. Bitcoin’s dominance has fallen 6% since the ETF’s launch last week, and is predicted to fall as much as 40% this year. Despite a potential market correction following ETF approvals, altcoins are driving momentum, with Ethereum and Solana seeing gains.
There is no denying that altcoins have outperformed Bitcoin since last week’s launch of Bitcoin spot exchange-traded funds (ETFs). As calls for altseason intensify, analysts posit that the launch of ETFs could be good news for altcoins.
Bitcoin prices suffered a 14% correction in the days following the expected launch of spot ETFs in the United States. However, altcoins have held on and maintained their recent gains.
Low Bitcoin Volatility Good for Altcoins
Today, Andrew Kang, co-founder of cryptocurrency venture capital firm Mechanism Capital, said that the launch of the Bitcoin ETF is good for BTC, “but actually much better for altcoins.”
He said volatility for Bitcoin will drop now that institutions are involved, and gains will be slow and steady: “The Goldilocks scenario for altcoins is when BTC slowly rises over the span of months and years.”
“Few if any double digit % intraday swings,” he said before adding that “most days will go up, but not as much relative to the early glory days.”
“BTC will offer too little volatility to interest many traders, but a grind up creates confidence in an upward trajectory for the crypto market.” This will result in “continued comfort and allocation down the risk curve,” he said. Furthermore, Bitcoin dominance has decreased by 6% since the ETFs launched last week.
According to TradingView, BTC’s market share is currently just under 51%. This is down from its highest level since April 2021 on January 10 at 55% when prices soared to $48,500. Kang predicted that BTC dominance would fall to 40% this year.
Furthermore, on-chain analyst “Negentropic” exclaimed: “Altcoins are ready to fly!” on January 16.
He noted that markets have had a period of consolidation following the “breakout of the rounded bottom formation,” and that the next phase is acceleration.
“This is where altcoin season sends cryptocurrencies flying. “The market will double and triple in a matter of a few weeks to months.”
Bitcoin Spot ETF: Crypto Markets’ 1.4% Increase
The total capitalization, including BTC, is currently $1.78 trillion, following a gain of 1.4% on the day. However, Bitcoin has barely budged, and altcoins are driving the momentum once again.
Ethereum has gained 2.2% on the day and was trading at $2,578 at the time of writing. Furthermore, Solana (SOL) had recovered $100 after a 4.6% rise.
Chainlink (LINK) has also performed well, gaining 3.3% on the day to reach $15.75. However, analysts have predicted a market correction in the wake of the Bitcoin ETF approvals.
Bitcoin Price Prediction in 2024
According to CryptoPredictions, Bitcoin started January 2024 at $42,208,202 and is expected to end the month at $33,464,784. During January, the expected high price of BTC is $45,590,796 and the low is $31,001,741.
The BTC price for today (17.01.2024) is forecast to be in the price range of $35,916,103 – $52,817,798. The price of Bitcoin is expected to end at $42,254,238 today.
Binance, on the other hand, says that Bitcoin is -0.69% in the last 24 hours, and it has a circulating supply of 19.60M.
By Leonardo Perez
