The Crypto market has shown signs of divergence as Bitcoin pulls back, and interest in Altcoins is growing.
summary
- Bitcoin stays near the $110,000 mark and shows signs of pullback
- Ethereum's $46,000 climbing revives appetite for risk, and altcoins benefit
As August approaches, the crypto market is beginning to diverge. Bitcoin (BTC) is slowly losing momentum, and liquidity is flowing towards Ethereum (ETH). As of August 27th, Bitcoin had fallen 0.7% over the past seven days, while Ethereum had risen 8.24%, beating $4,633. In this context, several analysts expect there are signs that altcoins can make profits in the coming weeks.
According to Arthur Azizov, founder of B2 Ventures, Ethereum's Rise has increased risk appetite across the Crypto sector. For example, Solana (SOL) will increase by 15% that week, and Altcoin may continue to increase if Ethereum remains strong.
“Look forward, the setup will mostly depend on ETH. If they ultimately beat $5,000, Altcoins could have a 20-30% upside in September. If ETH continues to stagnate in the 4,400-4,900 range, then if ETH falls below $4,400, like strong Altcoins like XRP, you can expect to see a sideways trade only with Catalyst-driven moves, as in Azizov, B2 venture.
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Bitcoin, Ethereum is pulling back from recent highs
Bitcoin and Ethereum experienced annual highs in August, with Bitcoin at $124,457 and Ethereum at $4,626. According to Ruslan Lienkha, Market Head at Youhodler, the recent drawback from these levels primarily reflects broader market sentiment.
In particular, US stocks recently saw similar revisions from their all-time highs during that period. The question remains whether this recession in stocks is a temporary fix or a longer term trend.
The main macrocatalysts for crypto heading into September remain U.S. inflation, interest rate policies and labor market data. The interaction of these factors primarily forms an overall risk sentiment, and as a result, forms the trajectory of both traditional and crypto markets,” says Ruslan Lienkha, Youhodler
read more: Tom Lee predicts that Ethereum will be at the bottom a few hours after Bitmine snaps 4,871 ETH
