Altcoin Season is Back? Assets Jump Against Bitcoin (BTC)
The recent climb of BTC above $8,000 put pressure on altcoins, but now smaller assets are climbing in Satoshi prices.
Altcoin season arrived quickly, as Bitcoin (BTC) kept to the newly gained $8,000 level. Almost all significant altcoins and tokens rose in BTC terms, adding as much as 17% in the case of Tezos (XTZ).
Still, for most of the coins, the recovery against BTC is very tentative and the prices are closer to the recent lows. Ethereum (ETH) is still below 0.03 BTC, and Bitcoin Cash (BCH) is still on the downward trend against the leading coin.
The dominance of BTC remains high, at around 58% of the entire market capitalization. The leading coin has almost doubled its price since the start of 2019. But some altcoins have performed even better. Litecoin (LTC) went up from lows of around $22 in December 2018, rising to above $90 in the most recent rally.
One of the reasons for the altcoin climb is the presence of a stablecoin component, allowing for direct dollar-denominated trading. For most altcoins, there is also direct speculation against BTC prices. In the case of LTC, increasing activity and interest also led to a trading anomaly, where the LTC/PAX pair saw a “fat finger” order, buying 1 LTC for the equivalent of $10,000.
Currently, ETH sees the biggest direct inflows of Tether (USDT), the equivalent of $1.3 billion in 24 hours. ETH reached a dollar price of $230, after being unable to conquer the $200 level for weeks.
On Wednesday, the altcoin rally continued despite Binance freezing its trading for the scheduled maintenance:
For most of the day, Binance is expected to be offline, with the prices being set by other exchanges.
Altcoin rallies against BTC have seen more significant levels in the past. But now, assets have accrued reputations, and not all altcoins go for dramatic BTC appreciation. In the past day, the entire market saw volume records, led by BTC trading, with the entire activity exceeding $103 billion’s equivalent in 24 hours. The trading activity is much higher in comparison to the December 2017 rally, and following a long bear market, there are more favorable conditions for mainstream acceptance of BTC and several leading altcoins.