After a period of downward volatility and uncertainty, Bitcoin enthusiasts have reason to rejoice as the world’s leading cryptocurrency has recently broken past the crucial $30,000 mark. The recent surge has investors and market analysts speculating on whether this could be the catalyst that triggers a significant rally for altcoins as well.
Bitcoin’s Bullish Rally Sparks Buying Pressure For Altcoins
The cryptocurrency market has bounced back from last week’s downturn, with a boost in positive sentiment among traders leading to increased buying pressure. Bitcoin’s price has leaped more than 5%, surpassing the crucial $30,000 mark, while Ethereum’s price is also aiming to reclaim the $2,000 threshold.
Bitcoin’s price experienced a boost as First Republic Bank’s stock took a hit, with shares of FRC plummeting nearly 50% in the past 24 hours. This steep decline contributes to a staggering 93.32% drop since the beginning of March for the bank.
Remarkably, despite the bank’s stock plunge, the US dollar index remained unscathed – a silver lining amidst waning confidence in the currency. In a twist of events, Bitcoin price experienced a direct boost from these developments, soaring past its much-anticipated level of $30K recently.
Santiment, an on-chain data aggregator, recently tweeted that despite the latest market pullback, the share of social media conversations surrounding BTC remains well above average levels.
The tweet explains that heightened social media attention for BTC typically occurs during periods of extreme market euphoria or anxiety – the latter being the current scenario. Santiment suggests that this could signal a potential bullish rally for BTC in the near future.
Are Major Altcoins Set To Rally?
According to a recent report from Coinbase, the correlation between Bitcoin (BTC) and Ethereum (ETH) has been on a downward trend since the beginning of 2023. This divergence has become more pronounced following the Shapella hard fork on the Ethereum network. This suggests that Bitcoin and Ethereum in one’s portfolio may offer greater advantages than holding just one of them. This strategy could potentially decrease overall volatility while boosting potential returns on the portfolio.
Moreover, Bitcoin’s recent breakout above $30K suggests a significant shift in the altcoin market as Bitcoin’s dominance over altcoin increased by 0.7%. As of writing, Bitcoin witnessed a minor rejection and is trading at $29.9K with a gain of 8.9%. While Ethereum attempts to break above $2K as it trades at $1,950, gaining over 7% in the last 24 hours.
Altcoins such as BNB, Dogecoin, Shiba Inu, and XRP experienced gains of over 4%, while Polygon (MATIC), Cardano, and Solana surged close to 8.5%. This upward momentum contributed to the global crypto market’s 6% increase to $1.2 trillion within the last 24 hours. Notably, the total crypto market volume saw a significant 20% rise during the same period.
However, any negative news regarding Ripple’s hearing today will affect the crypto market heavily, which may remove all the recent gains.