When Bitcoin rises slowly, it can cause an “altseason” to occur. In fact, ETH has outperformed BTC so far this year in percentage terms, which is why the growing momentum may be returning to Bitcoin.
Especially during the month of August, many DeFi tokens surged 5-20 times, causing a massive altcoin craze.
However, when the price of Bitcoin increases in the short term, it can cause the market for altcoins to crash. The profits from altcoins are likely to return to stablecoins and Bitcoin, leading to BTC to recover on its own.
Su Zhu, the CEO of Three Arrows Capital, highlighted that the fact that Bitcoin is rising rapidly could lead to a decline for altcoins:
“For BTC to rise quickly is bearish for altcoins. The reasons for this are myriad, but they boil down to the fact that money is a game of coordination and Bitcoin is the starting point; this is regardless of how you feel about it, the community is literally irrelevant. “
As Cointelegraph reported extensively, various news related to the exchange, including the suspension of withdrawals by OKEx, caused BTC to drop below $ 11,300. Despite the uncertainty in the market and the fall in US stocks, BTC topped $ 11,700.
Analysts remain relatively confident in Bitcoin’s optimistic medium-term trajectory. But if BTC falls back in the short term as the market seeks relief, it could cause a further correction for altcoins.