After incurring some incredibly bullish buying pressure that sent Bitcoin running up to $13,000, the cryptocurrency was unable to maintain its strength and was sent reeling down to the lower-$12,000 region. BTC’s latest drop proved to be quite damaging for the crypto markets, as many altcoins are now trading down nearly 10%.
Despite their recent bearishness, many analysts believe that this latest drop may actually prove to be positive for many altcoins in the crypto markets, as it may mark a pattern of capitulation that sparks a bull run.
Crypto Markets Plummet Amidst Bitcoin Downturn
At the time of writing, Bitcoin is trading down roughly 1% at its current price of $12,330, which is down significantly from its 24-hour highs of $13,100 that were set earlier today.
During BTC’s recent bull run, most altcoins have experienced what can be largely considered lackluster price action, as the aggregated crypto markets have been unable to mirror the massive gains that Bitcoin has incurred over the past several weeks and months.
Today, all major cryptocurrencies are trading down significantly, with Ethereum trading down nearly 8%, XRP trading down nearly 10%, and Litecoin trading down a whopping 11%.
When looking towards altcoin’s BTC trading pairs, it becomes abundantly clear as to just how negative their price action has been as of late.
Despite this, Alex Krüger – a popular economist who focuses primarily on cryptocurrencies – noted in a recent tweet that he believes today’s crash could mark the end of the bear market that altcoins have been facing as of late.
“Today’s crash *could* be the end of the downtrend for alts vs BTC,” he noted.
Today's crash *could* be the end of the downtrend for alts vs BTC. pic.twitter.com/rYtWCTERul
— Alex Krüger (@krugermacro) July 10, 2019
Is it Good That Altcoins Are Decoupling from Bitcoin?
Importantly, the crypto market’s lack of close correlation to Bitcoin’s price in recent days may ultimately prove to be a positive thing for the entire markets, and one analyst believes it could ultimately lead to positive price action in the mid-term.
Don Alt, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that he believes short-term pain for altcoins will lead to mid-term gains.
“Alt ratios have been going up when BTC went down and vice versa. On this most recent BTC price drop, a lot of alt pairs went down along with it. Decoupling is a good thing for alts and in my experience often leads to their tops / bottoms. Short term pain – mid term gain IMO,” he explained.
Alt ratios have been going up when BTC went down and vice versa.
On this most recent BTC price drop, a lot of alt pairs went down along with it.
Decoupling is a good thing for alts and in my experience often leads to their tops / bottoms.Short term pain – mid term gain IMO.
— DonAlt (@CryptoDonAlt) July 10, 2019
As the week drags on and Bitcoin further reacts to the massive volatility it has been incurring as of late, it is highly likely that analysts will soon understand whether or not any prophesized “altseason” exists around the corner.
Featured image from Shutterstock.
