As Bitcoin’s price falls, interest in alternative coins increases.
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- Bitcoin has shown signs of weakness, remaining near $110,000.
- Ethereum’s rise to $46,000 has revived risk appetite, and altcoins have benefited.
Crypto markets have begun to diverge as August comes to an end. Bitcoin (BTC) Ethereum is gaining in popularity, but its momentum is fading. (ETH). Bitcoin had fallen 0.7% in the last seven days as of the 27th August, whereas Ethereum had risen 8.24% and broken the $4,633 mark. In the context of this, analysts predict that there will be signs in coming weeks that indicate altcoins may benefit.
B2 Ventures’ founder Arthur Azizov said that Ethereum has fueled the appetite for risk in the entire crypto industry. Solana, for example. (SOL) The price of Ethereum was up 15 percent over the same period, and gains in altcoins will continue to be seen if Ethereum continues to rise.
“Looking forward, the setup primarily depends on ETH. If it eventually breaks $5,000, altcoins could have 20-30% upside in September. If ETH keeps stalling in the $4,400-4,900 range, we could expect sideways trading with only catalyst-driven moves. Ultimately, if ETH drops below $4,400, even strong altcoins like XRP and Solana risk having 10-15% drawdowns,” Arthur Azizov, B2 Ventures.
Bitcoin and Ethereum fall from their recent highs
In August, both Bitcoin and Ethereum reached yearly highs, Bitcoin reaching $124 457, and Ethereum $4 626. Ruslan Liedkha, head of markets at YouHodler says that the recent drop from these levels reflects broader market sentiment.
U.S. stocks, in particular, experienced a similar decline from their all-time highs. This downturn is still a question of whether it’s a correction that will only last a few months or an overall trend.
Key macro drivers for crypto going into September are U.S. interest rate policy and inflation data. These factors, when combined, will have a major impact on the overall risk perception and in turn, both traditional and cryptocurrency markets’ trajectory. Ruslan LIenkha, YouHodler
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Source: crypto.news
