The crypto market is once again open on a bearish note as the price of bitcoin falls below the $23,000 mark. Instead, altcoins like Ethereum, Binance Coin and Polkadot seem to be winning the race.
This indicates a changing market sentiment – it seems that investors are losing their faith in bitcoin and shifting their focus to altcoins. It looks like the BTC crown may be snatched away.
The main cause for concern is that if the major currency continues this trend, the annual lows could be retested and bitcoin could be pulled down from the 43% to 30% level. This could prove to be an opportunity for the altcoin to take the lead.
According to a survey by Arcane Research, altcoins have been performing well in August. The chart below shows the monthly performance of large, mid and small cap indices; It is clear to see that bitcoin is underperforming in comparison.
The research firm also noted that bitcoin dominance has fallen from 47% in June to the current 40.5%.
Short-term bridge to the crypto market
Although market sentiment is positive, most currencies are pulling down, which could be a short-term impact of macro-economic factors including a hike in the Fed Reserve’s rates.
Tomorrow, August 11, the US Federal Reserve (Fed) is set to disclose the Consumer Price Index (CPI) for the month of July. This will be used for the current inflation of the US dollar.
If July’s CPI data is on a positive note, the Fed’s rising interest rates may not be so strict. Either way, these numbers are likely to affect the crypto space at large.