30s Summary
Bitcoin’s dominance over the crypto market currently stands at its strongest point since April 2021, at 60.6%. Other smaller cryptocurrencies like Ethereum and Solana are struggling amidst high market volatility. Experts predict a lack of major influencing factors for smaller cryptos in the mid term. Coinbase anticipates that the wider conditions of the digital asset class remain positive until 2025, despite regulatory uncertainties. Bitcoin’s price has marginally dropped, while larger cryptos have witnessed a 10% decrease from their peaks. The U.S. elections results would play a crucial role in the performance of smaller cryptocurrencies.
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Bitcoin’s hold over the crypto market has recently reached its strongest point since April 2021, at 60.6%. This comes as other smaller cryptocurrencies, like Ethereum and Solana, have struggled during recent market volatility.
Experts from Bitfinex suggest that these smaller crypto coins might continue to see difficulty in the mid-term, as there seems to be a lack of major factors that could boost their performance.
However, the head of research at Coinbase suggested that the wider conditions of the digital asset class are positive up until 2025, which should benefit all cryptocurrencies including altcoins. He also anticipated that the aftermath of the U.S. elections may ease some of the regulatory uncertainties that have been putting pressure on these altcoins, and provide potential room for growth.
While Bitcoin has seen a slight decrease of 4% from its near-record high of more than $73,000 last week, larger cryptocurrencies like Ethereum’s ether and Solana’s native token have dropped about 10% from their recent peaks. The overall CoinDesk 20 market has seen a decrease of almost 6%.
Cryptocurrencies outside of the top 10 largest have been hit even harder. Their combined market capitalization plummeted to its lowest point in comparison to Bitcoin since early this year.
Altcoins have found it difficult to compete with Bitcoin this year, partly due to uncertainties in regulation. The outcome of the U.S. elections and the expected prospect for digital asset regulations will be especially important for these smaller cryptocurrencies.
Although Bitcoin is widely anticipated to benefit in the medium term regardless of the U.S. election outcome, altcoins are more sensitive to the results. This means the performance of altcoins in the medium term will be more influenced by the election result compared to Bitcoin.