The crypto market has once again opened on a bearish note as Bitcoin price has slid under the $23,000 mark. Instead, altcoins like Ethereum, Binance Coin and Polkadot seem to be winning the race.
This indicates a changing market sentiment – it seems that investors are losing their faith in bitcoin and shifting their focus to altcoins. It looks like the BTC crown may be snatched away.
The main cause of concern is that if the flagship currency continues this trend, there could be a retest of yearly lows and Bitcoin might be pulled down from 43% to the 30% level. This could prove to be an opportunity for altcoins to take the lead.
According to a survey by Arcane Research, altcoins have been performing well in August. The chart below shows the monthly performance of large, mid and small cap indices; It is clear to see that bitcoin is underperforming in comparison.
The research firm also notes that Bitcoin’s dominance has seen a drop from June’s 47% to the present 40.5%.
Short-term bridge to the crypto market
Although market sentiment is positive, most currencies are pulling down, which could be a short-term impact of macro-economic factors including a hike in the Fed Reserve’s rates.
Tomorrow, August 11, the US Federal Reserve (Fed) is set to disclose the Consumer Price Index (CPI) for the month of July. This will be used for the current inflation of the US dollar.
If July’s CPI data is on a positive note, then the Fed’s increasing interest rates might not be that strict. Either way, those numbers are likely to massively impact the crypto space.
