The world of altcoins is in a bit of a whirlwind this week, with Ethereum feeling the heat, but Bitcoin is holding strong in its six-figure sanctuary. The crypto markets have taken a little tumble, dropping by 2.7% and leaving the total market value at a cool $3.6 trillion. And it seems like altcoins are taking most of the punches.
Trader ‘TXMC' made an interesting point, suggesting that money isn't quite flowing from Bitcoin to altcoins because many folks on crypto Twitter are more into altcoins. Analyst James Check chimed in, saying it's obvious that crypto enthusiasts are a bit too heavy on altcoins, especially the ones that haven't been performing well. A slight 1% dip in Bitcoin can lead to a whopping 30% hit on their portfolios!
Meanwhile, trader ‘Bluntz' is amazed by the altcoin capitulation even as Bitcoin stays above $100k. Ethereum is having a rough ride, slipping back to the $3,000 mark before making a slight comeback. It's dropped 16% since its January high of over $3,700, and its ETH/BTC ratio is looking a bit shaky, close to a four-year low.
There's been some drama over at the Ethereum Foundation, which hasn't helped the situation. But not all is gloomy; the Donald Trump DeFi project and World Liberty Financial's Ethereum buying spree are bright spots. Rumor has it, Trump might even start a national strategic Ethereum reserve!
Analysts are still holding onto hope, predicting a new all-time high for Ethereum in the coming months. Some are even forecasting a breakout to $4,000 by the end of February, with more gains in March and April.
Despite the ups and downs, Bitcoin dipped to just above $100k but bounced back to $102,600. It's been hanging out above six figures for almost two weeks now, just a 6% shy of its all-time high. Historically, Februaries have been kind to Bitcoin, so we might see some action soon. Keep your eyes peeled and your crypto spirit high!
