The day before yesterday, the price of Bitcoin was only a few hundred dollars from a new all-time high. The closer the leading cryptocurrency is to the price peak, the more altcoins “wake up from hibernation”.
What can happen to altcoins when Bitcoin finally breaks the $20,000 mark? It is noteworthy that analysts hold ambiguous positions on this score.
Ripple, Ethereum, and other major altcoins have already made a breakthrough
After re-testing the psychological mark of $10,000, Bitcoin almost doubled in price. Any impressive rally culminates in either a correction, a new peak, or both ...
This week, the Bitcoin rate for the first time in three years exceeded $19,000. More importantly, there is no serious resistance above the current rate to $20,000, so an update to the historical high of BTC seems imminent.
The closer the leading cryptocurrency is to the coveted mark, the more altcoins break through. Some coins have trending parabolic over the past few days.
The Ripple price has risen more than 200% over the past couple of weeks. Ethereum, Litecoin, Cardano and some of the popular altcoins of the latest cryptocurrency bubble have started to inflate again.
Updating the BTC maximum is the beginning of the bubble or the end of the altcoin rally?
It is worth noting that crypto analysts disagree about what will happen to altcoins when the Bitcoin exchange rate overcomes $20,000.
Trader Edward Kleps, known on Twitter as TeddyCleps, believes that once the price of BTC exceeds $20,000, the altcoin market will become lifeless.
His assumption can probably be justified by the fact that after updating the record peak BTC, both retail and institutional investors will direct all their capital to the market of the leading cryptocurrency, without risking short-term profit from investments in small coins.
However, there is another opinion: as the price for 1 BTC grows, in the eyes of most ordinary people the asset becomes unavailable, and they direct their capital to buy cheaper and more promising, in their opinion, altcoins, which, during the development of the previous cycle, confidently rose in price in paired with BTC.
In part, this theory is confirmed. Since the beginning of this crazy year, Bitcoin has risen in price by 165%, while all the attention of investors and traders has been riveted on it. On the other hand, Ripple has risen 100% in just the last week, while Ethereum is up more than 350% since the beginning of the year. Thus, the lower the asset in the rating by market capitalization, the more impressive the next surge can be in the development of a new bubble.
In such a scenario, the history of the previous bullish cycle may repeat itself. A GalaxyBTC analyst noted that as soon as Bitcoin renewed its historic peak in 2017, the total market capitalization of altcoins shot up and BTC's dominance plummeted: