Bitcoin’s market capitalization has surged by a whopping 80% since November 2022, soaring past the $28,000 mark. However, the cryptocurrency’s ascent reached a new level on March 10 when the Federal Reserve declared an emergency liquidity injection to safeguard the floundering banking system. This sudden move sent shockwaves through the market and catalyzed Bitcoin’s meteoric rise.
As Bitcoin continues to soar, the potential for profit in the altcoin market is becoming increasingly attractive. Even though numerous altcoins are trading at a staggering 90% below their historical peaks, many investors and traders remain optimistic about the future, anticipating substantial growth in the coming weeks.
Crypto’s decentralized revolution
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The enigmatic Satoshi Nakamoto created bitcoin to decentralize financial transactions and restore power to regular people. Bitcoin was developed in reaction to the 2008 Great Financial Crisis, which highlighted the vulnerability of the existing financial system.
The repeated failure of the banking system has struck again, this time claiming central banks such as Credit Suisse, Silvergate Bank, and Silicon Valley Bank as casualties. Even more troubling, experts predict that up to 186 other US banks may be on the verge of bankruptcy. In light of the US government’s rampant printing of fiat currency and resulting high inflation rates, many are turning to cryptocurrencies as a promising alternative to traditional bank deposits.
As the global financial system becomes increasingly vulnerable, bailing out banks with additional liquidity may exacerbate the problem. This has led investors to seek safe havens for their capital, with gold and Bitcoin gaining popularity as viable options. As a result, many experts predict that the ongoing global rally will persist, providing further opportunities for growth and profit.
It is a common phenomenon that the value of altcoins tends to trail behind the leading cryptocurrency, primarily because investors tend to concentrate heavily on Bitcoin. Investors initially push BTC/USD whenever important news breaks out in the market. Nevertheless, as the price of Bitcoin keeps climbing, they eventually tend to book their profits and invest their capital in various other crypto ventures.
The race for crypto supremacy
In the current financial climate, Bitcoin enjoys an unprecedented surge in value, outpacing other cryptocurrencies by a significant margin. As evidence, between March 10, 2023, and today, Bitcoin’s market capitalization has skyrocketed by 45%, while Ethereum has only managed a 31% increase. Despite the fluctuations in the altcoin season index, which currently stands at 25 out of a possible 100, experts predict that altcoin capitalization will eventually surpass Bitcoin’s.
Another essential factor to consider is Bitcoin’s Dominance. The price has approached a high resistance level and has responded noticeably. Continued fall would signal altcoin domination over Bitcoin.
Altcoins, apart from BTC and ETH, are exhibiting significant potential for growth. Breaking through the descending trendline and passing a double test, these currencies are now headed toward the resistance zone valued at approximately $450 billion. Market analysts anticipate up to 20% gain as altcoins make headway. If this resistance barrier is surpassed, experts predict a potential surge toward a $630 billion market cap, reflecting a substantial 62% increase from the current level.
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