On May 4, the price of Ethereum on the Binance crypto exchange for the first time exceeded $ 3.5 thousand.Since April 25, the largest altcoin in terms of capitalization has risen in price by 60%. At the same time, the Dogecoin rate updated its all-time high at $ 0.61. In just one day, the cost of the altcoin has risen by more than 40%. Due to this, it surpassed XRP and took the fourth line in the list of the largest cryptocurrencies in terms of capitalization.
At the same time, the bitcoin rate fell by 6%, at the moment falling to $ 53.2 thousand. The asset continues to trade significantly below the historical maximum of $ 64.8 thousand, set in mid-April, writes RBC Crypto.
EThe experts told what it was connected with and how the situation could change in the near future.
Why bitcoin is inferior to altcoins
There is an opinion among investors that alternative cryptocurrencies may still show growth, while bitcoin is already psychologically very expensive, explained Janis Kivkulis, lead strategist at Exante. According to him, bitcoin needs a news feed, market participants should see that there are still large buyers of this coin in the world. Without such triggers, a few more unsuccessful attempts to test $ 60 thousand can turn into an impressive sale, which will also be supported by altcoins, the specialist warned.
Now there is an oversupply of money in the markets thanks to the Fed’s super-soft monetary policy, added Mikhail Karkhalev, financial analyst at Currency.com. Investors are not only ready to invest in risky assets, they are ready to take big risks, investing and supporting even projects with a dubious reputation, Karkhalev said. He stressed that the growth of the DeFi and NFT market, as well as various kinds of projects and altcoins, is solely associated with this, as an echo of a similar situation in traditional markets.
“Bitcoin, as an asset that can give X’s, is not particularly interesting now, but it will become interesting later, when investors begin to withdraw from third-rate altcoins,” Karkhalev is sure.
Crypto market perspective
The initial correction of BTC (after the Coinbase listing, when the classic scenario worked – buy on rumors, sell on facts) provoked the liquidation of long positions, which in turn strengthened the correction – quite a classic story, said Maria Stankevich, Director of Development for EXMO Exchange. According to her, this situation did not affect the long-term and medium-term goals for bitcoin. Stankevich predicted a medium-term upward trend.
“The long-term outlook looks positive so far. For those who have not yet managed to enter BTC or ETH, now is an excellent opportunity, since we predict at least a twofold increase in these assets by the end of the year, ”the expert shared.
Karkhalev is also expecting an update of the maximums for bitcoin in the near future. According to him, the cryptocurrency will have the hardest part when overcoming the $ 60 thousand mark, with which the last collapse occurred. At the same time, in the event of a breakdown of $ 60 thousand, the cryptocurrency quotes will reach $ 70-72 thousand, the specialist suggested.
“In my opinion, now, after any decline, it is more profitable to buy in addition and strengthen buy positions. Since, I repeat, this is facilitated by fundamental events in the global economy and the mood of the market in general. Growth will continue, in my opinion. Many of the big investors have been waiting for a $ 2 trillion market capitalization to enter the cryptocurrency market. The market has reached the required capitalization, so in the near future the influx of investors will only increase, ”Karkhalev said.
Kivkulis also predicted short-term growth. However, he warned that opening positions at current levels could be increasingly risky.
“Short-term strategies for cryptocurrencies are always casinos. When we see such price highs, these risks increase many times over. Bitcoin holds its positions – and this is already great news for the market, but repeated inability to overcome $ 60 thousand creates a not very favorable foundation in principle, “the strategist concluded.
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