The crypto market spectates a rather rough start to the year, as the star crypto witnesses a major correction. Wherefore, the market sentiments plunge deeper, with the fear and greed index weighing heavier at extreme fear, with a score of 15. The crash has been disappointing to novices, who have been optimistic about the market turning bullish for the month.
The market cap of the industry has fallen to $2.05 Trillion, taking a plunge of 8.12% over the previous day. The business has parted ways with close to $1 Trillion, in just about two months. However, The recent corrections in the price of the kingpin Bitcoin have done little harm to alternative cryptos in the business. As the alts have managed to remain little deterred from the side winds.
Is An Alt Season On The Periphery Of Q1 2022?
Altcoins in the crypto market have been making praise-worthy moves off-late. The space has been a witness to an impeccable journey of Altcoins in 2021. The market cap of the altcoin industry is presently at $1,242,548,059,790. Which has been projecting fairly well in contrast to the entire market cap of the business. While the daily NetFlow of BTC is -$79.8 M, that of ETH is $47.2 M.
According to some sources, over 208,000 crypto accounts have been liquidating in the past 24-hours, tallying the sum to over $810 M. While the dip in altcoins has not been drastic, buying the dip is still the mantra of many traders. On the other hand, certain traders are shelling out only that they can afford to lose.
It is learned from Santiment that several altcoins are looking neutral, based on short-term and long-term trading returns. While the dominance of Bitcoin is at 37.6%, that of Ethereum is at 18.9%, meaning an alt season might still need time to arrive.
Moreover, Bitcoin’s death cross is expected to occur sometime between the 10th and 12th of January. This could result in major price corrections of Bitcoin, and would indirectly hit altcoins as well. That said, since altcoins are generally indirectly hit, they recover faster than Bitcoin. Hence, an alt season could approach thereafter.
Summing up, altcoins leading an independent rally of Bitcoin’s market trend is a positive sign for the crypto industry. We can expect the current year to be overall a bullish one for altcoins. As the underlying protocol of alts has been fueling emerging sectors such as DeFi, NFTs, metaverse, and gaming. That said, altcoins will play an imperative role in the crypto-verse breaching the $10 Trillion market cap in near future.
Source: https://coinpedia.org/bitcoin/bitcoins-death-cross-a-threat-to-the-fast-approaching-alt-season/