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The altcoin recovery that began after the May 19 flash collapse has persisted, and Ethereum, as well as major DeFi projects like as LINK, AAVE, CRV, and SUSHI, have risen. Simultaneously, Bitcoin was being removed from exchanges at the fastest rate since November 2020. Along with the price trend, Bitcoin exiting exchanges when the Mayer Multiple falls below 1.0 indicates market anxiety. In the near run, fear is positive for Bitcoin’s price.
According to the price chart above, Bitcoin is approximately at the same level as it was in the last week of May 2021. During the current bull season, Bitcoin accumulation has persisted after every 10% decline in price. In the short run, Bitcoin leaving exchanges with these criteria is positive for both Bitcoin and altcoins. Because Bitcoin’s dominance is low, there is potential for an altcoin rise driven by Ethereum and Link, which are both associated with Bitcoin.
Furthermore, the recent dip in Bitcoin’s price to $33000 resulted in a decline in altcoin market capitalisation. The strong link between Bitcoin and the leading cryptocurrencies had an influence on the altcoin surge and pricing. However, the sour feeling among traders for Bitcoin has resulted in a reduction in dominance, which is good news for altcoins. The dominance of Bitcoin was 41 percent, indicating that an altcoin surge is more likely.
Among cryptocurrencies, Ethereum’s number of active addresses has steadily increased, indicating that a growth in the quantity and volume of altcoins’ on-chain metrics is optimistic for altcoins. Bitcoin’s concentration by huge HODLers has reduced to 12%, indicating the altcoin rise. At the present price level, Bitcoin and major cryptocurrencies remain undervalued. Though mood is now gloomy, it is projected to become optimistic in the aftermath of an altcoin rise.
In the past, Bitcoin’s rangebound price action was bullish for altcoins. The same is likely at the current price level based on the trend. Additionally, institutions are not as keen on investing in DeFi projects, however, they have invested in Bitcoin, Ethereum and top altcoins. This has a bullish impact on altcoins’ prices both in the long and short term.