Altcoins have remained fairly strong despite Bitcoin’s recent downturn, suggesting investors might be adjusting how they safeguard their capital during market uncertainty, analysts say.
“The shift hints at a potential regime change where investors are exploring value in altcoins, diverging from the typical pattern of flocking to Bitcoin during downturns,” analysts from crypto exchange Bitfinex said in a Sept. 9 report.
“Altcoin markets have shown resilience,” it added.
The analysts cited Bitcoin’s (BTC) recent price decline, which fell to as low as $52,827 on Sept. 7, a 10.8% drop compared to seven days prior, according to CoinMarketCap data.
Bitcoin has since slightly recovered to $57,001, though it remains below the crucial $60,000 level, which it hasn’t reached since Aug. 30.
Bitcoin is up 0.65% over the past seven days. Source: CoinMarketCap
They pointed out that amid Bitcoin’s price decline, Bitcoin’s dominance — measuring its share of the crypto market — decreased by 1.3%. However, the market cap of all cryptocurrencies outside the top ten increased by 4.4%.
At the time of publication, Bitcoin’s dominance is 57.33%, down 0.50% over the past week, according to TradingView data. It’s not far off 60%, a level that Benjamin Cowen, founder of Into The CryptoVerse, sees as the “final move” for Bitcoin dominance.
Traders often look for signs that Bitcoin dominance is peaking as a signal to sell Bitcoin and shift capital into alternative assets, such as altcoins.
Bitcoin dominance is down 0.53% over the past month. Source: TradingView
Meanwhile, the total altcoin Open Interest (OI) — which represents the total number of contracts that have not been offset or fulfilled by delivery — has dropped 55% from its all-time high, which Bitfinex’s analysts claim signals “speculative apathy and potential exhaustion among sellers.”
Several traders agreed that fewer speculative bets on altcoins suggest the market is getting stronger.
Related: Altcoins at ‘sell your house’ levels amid flashing buy signals, says trader
“The strength altcoins have shown in the latest correction and the bounce…
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