A slight recovery in the price of Bitcoin on August 5 sparked significant increases in lesser-known coins known as “altcoins.” Because they are favored by more speculative traders and tend to be less liquid, altcoins frequently outperform Bitcoin during price rallies and underperform during price declines.
The lead cryptocurrency, Bitcoin, increased only 2.24 percent as of the time of publication to trade at $23,054. Ether was up 6.45 percent to $1696.
The majority of alternative cryptocurrencies surpassed bitcoin, with Decred (DCR), which has gained 120 percent in the last 24 hours, dominating the charts. This comes after the lead developer for Decred tweeted that the updated proposal to upgrade the website and messaging is already prepared and is just waiting for reimbursement and deployment clearance. Decred has also returned to the top 100 cryptocurrencies in terms of market capitalization.
Altcoins such as Near Protocol(NEAR, +16.87%), Theta Network (THETA, +14.12%), Holo (HOT, +14.42%), Ravencoin (RVN, +11.24%) were among the top gainers for the top 100.
The “Worst” Might Have Already Happened for Bitcoin
Mike Novogratz, CEO of Galaxy Digital, recently declared, “I think the worst happened,” during the Bloomberg Crypto Summit. Novogratz stated again that his five-year prediction remains at $500,000.
Some supporters predict that once the Fed’s tightening cycle is over, Bitcoin will make up this year’s losses.
“After that, we’ll have a strong up move. As a result, we are in the zone of accumulation. At the Bloomberg Crypto Summit, One River Asset Management’s founder and CEO, Eric Peters, said.’’ You are in the time frame where buying, not selling, is the appropriate action, ’’ he summarized.
The weekly average of LLTH-SOPR since mid-July reveals that Long-Term Holders (LTH) have been losing money when spending their coins. The weekly averaged value of LTH-SOPR is now at 0.67, indicating a 33 percent loss locked in on average, as prices have just encountered resistance near the $24k mark. ”This confirms the continuation of spending at a loss by Long-Term Holders in the current market, ‘’Glassnode wrote in a recent report.
This shows that the dominant spenders during this rally are long-term holders who bought coins at the 2021–2022 market tops, while those who still own coins from the 2017–2021 cycle (or earlier) are largely holding fast.
However, Glassnode highlights a positive as spot prices are trading higher than their average cost basis (of held coins), and the implied pressure on long-term holders’ hands has marginally decreased.
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