Bitcoin has almost recovered and maybe it will recover fully to above $60K. But altcoins will become market makers this week, some experts say.
The fall in bitcoin was triggered by three reasons: the blackout in China, the limited success of Coinbase on the NASDAQ, and an unconfirmed report on the tighter regulation of cryptocurrencies in the United States. The market has won back or bought off these disturbances, the uptrend continues, but there is no hope to expect new BTC records.
The market is now very sensitive to negative news. In particular, the news that President Biden is preparing to raise taxes for the rich people. Pending this decision, whales can take profits in order to pay tax at the old rate. In addition, bitcoin has been rising for too long, the power of growth is running out. But altcoins have accumulated a lot of energy.
Now in the top ten of the Coinmarketcap rating are the technological leaders such as Cardano (ADA), Polkadot (DOT), Uniswap (UNI), plus Dogecoin (DOGE), which accidentally got into this company, and Binance Coin (BNB), which has gone far ahead. Ripple (XRP) is unlikely to be able to displace BNB from third place, but it can grow to its all-time high due to good prospects in the SEC lawsuit.
Altcoins as a whole are growing twice as much as the first cryptocurrency is recovering. Experts point out that bitcoin has not corrected down enough, it has doubled since the beginning of the year. Altcoins fell even less and their growth was not so fast. Therefore, the prospect of a rally in altcoins is more likely. Investors will be shifting from BTC to other coins, this will lead to the fact that bitcoin goes sideways.
What altcoin could surge soon? Most likely, these will be two of the leading coins – Cardano (ADA) and Stellar (XLM). Cardano has great growth potential due to investments in the project from Arab funds. Stellar is a fork of Ripple with the same functionality but no problems with the regulator. Both cryptocurrencies caught the attention of Swiss fintech company 21Shares, which launched ETP (exchange-traded products) on them.
ETPs track the value of the underlying assets, which determine their price. According to 21Shares, the demand for cryptocurrency ETPs has grown by 200% since the first quarter of 2021. 21Shares has already launched a package of 14 cryptocurrency ETPs. ETP on Ripple (XRP) and Bitcoin Cash (BCH) were previously excluded from the package. Two new ETPs have been added to replace them.
ETPs are traded on the Deutsche Boerse, SIX Swiss Exchange, BX Swiss, and some on Börse Stuttgart, in pairs with the dollar, euro, Swiss franc, and pound sterling. The launch of new ETPs will contribute to the growth of the entire cryptocurrency market in the case when Bitcoin Dominance continues to decline, experts say.