The cryptocurrency market experienced a significant dip, with the total market cap dropping by 3% to approximately $2.4 trillion during early Asian trading on Monday. Bitcoin’s (BTC) recent downward trend over the weekend has led to a bearish market sentiment.
Closing last week at approximately $63,000, Bitcoin is teetering on a critical support/resistance level, raising concerns of further declines. Over the past 24 hours, Bitcoin’s price has fallen about 2.3%, trading at roughly $62,800 on Monday.
Should Bitcoin consistently close below $63,000 in the upcoming days, it is likely to test the support level just above $60,000.
What’s Next for the Altcoin Market?
According to the prominent crypto analyst known as Ash Crypto, the altcoin market may experience a period of consolidation lasting 6-9 months before the anticipated mega altseason begins. The analyst suggests that the altcoin sector could face a 15-20% drop if Bitcoin maintains its bearish trend.
“ALT Mcap has fallen below the mega bull trend line. A minor bounce may occur if BTC rises, but it appears the altcoin market will undergo a final capitulation phase, with altcoins potentially dropping another 20% before the next major season,” Ash Crypto noted.
Shifting Market Focus: Ethereum on the Rise
In light of recent outflows from U.S.-based spot Bitcoin ETFs, attention is shifting towards the Ethereum network. On-chain data from Santiment revealed that Ethereum recently saw its largest increase in active addresses in three months, reaching over 617,000 addresses last week.
The upcoming listing of newly approved spot Ether ETFs in the U.S. has fueled midterm bullish speculation. Earlier this year, the approval and subsequent listing of spot BTC ETFs led to a bullish surge, pushing prices towards an all-time high (ATH).
Notably, BlackRock and Fidelity have already seeded their respective spot Ether ETFs in anticipation of their listing next month.
Also Read: Standard Chartered Becomes First Bank to Launch Spot Bitcoin, Ethereum Trading
Potential Impact on the Crypto Market
The possible further decline in Bitcoin’s price could significantly impact the broader cryptocurrency market, particularly altcoins. Market analysts and investors are closely watching Bitcoin’s movements, as its price trajectory often influences the entire crypto ecosystem.
As the crypto market navigates these uncertain times, the potential listing of spot Ether ETFs offers a beacon of hope. However, the road ahead remains rocky, with market participants bracing for possible further declines before any significant recovery.
