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In an X post, crypto investment data platform Alphractal, first observed that altcoins have been outperforming Bitcoin, and market signals have subsequently highlighted increased profitability levels for Altcoins, which currently outweighs Bitcoin.
However, the Bitcoin vs altcoin correlation heatmap, as displayed on the Bitcoin chart, reveals that the average correlation between the apex cryptocurrency and alternative tokens is experiencing a swift decline.
Per the interpretation of the chart noted in the X post, the new trend marks a shift in the movement patterns of both altcoins and Bitcoin, as Altcoins are reportedly moving in an opposite direction from Bitcoin.
The post further references historical data, warning that a decline in correlation between Bitcoin and altcoins is essentially concerning, as it often precedes increased volatility levels and mass liquidations for either shorts or longs.
 
Total crypto market cap levels dip, Bitcoin and other leading altcoins take a hit
The market insight shared by the investment firm comes as the broader cryptocurrency market takes a major hit, which has resulted in the mass decline of leading crypto assets, including Bitcoin and other top altcoins.
According to data from CoinMarketCap, the cryptocurrency market has recorded a 2.32% decline in market cap value, which currently sits at $3.67 trillion.
At the time of this report, the premier cryptocurrency Bitcoin, is trading at a price value of $117,767, down 0.14% over the last hour.
Leading altcoins making the top 10 category are nursing mild losses, although gains attained over the last 7 days are still largely intact.
Source: https://zycrypto.com/altcoins-are-draining-bitcoins-liquidity-correlation-signals-a-warning-expert-reveals/