Outside Source
Crypto markets are down a further 2.7% on the day, with total capitalization falling to $3.6 trillion, and altcoins are taking the brunt of the fall.
“Capital is unlikely to rotate from BTC to alts because the majority of CT [crypto Twitter] is self-confessed to be mostly in altcoins,” observed trader ‘TXMC’ on Jan. 29.
Analyst James Check concurred, stating that it is “very clear” before adding, “CT is massively underinvested in Bitcoin, overweight alts, and specifically the alts that didn’t go up.”
Hence, sentiment is rekt on a 1% BTC pullback, “which results in a -30% on their portfolio,” he added.
I’m working on quantifying this as we speak, and it’s very clear.
CT is massively underinvested in Bitcoin, overweight alts, and specifically the alts that didn’t go up.
Hence sentiment is rekt on a 1% BTC pullback…it results in a -30% on their portfolio. https://t.co/9g968usmw8
— _Checkmate ⚡☢️️ (@_Checkmatey_) January 28, 2025
Ethereum Angst Rising
Meanwhile, trader ‘Bluntz’ told his 314,000 followers on X:
“The altcoin capitulation while BTC is still above $100k is really something to behold, I don’t think its ever been this bad before.”
Ethereum is taking a lot of the pain as its prices fell back to $3,000 again on Tuesday before it managed to recover some ground. ETH has now dumped 16% since its January high of just over $3,700 three weeks ago.
The ETH/BTC ratio continues to weaken as Bitcoin remains above six figures. It is currently at 0.03 and close to its lowest level for almost four years, according to Tradingview.
ETH/BTC chart looks like this and Vitalik comes lectures us on how things work.. pic.twitter.com/0zSAGNKF2y
— CoinMamba (@coinmamba) January 28, 2025
There has been a lot of dissent and a leadership shakeup at the Ethereum Foundation recently, which has put downward pressure on the asset.
However, there have been some bullish developments, such as the Donald Trump DeFi project, and World Liberty Financial continues to stack ETH.
Wow Trump again bought $10,000,000 of Ethereum in the last 2 hours.
He keeps on buying. LFG pic.twitter.com/xUw1q7xYgG
— Ted (@TedPillows) January 28, 2025
Meanwhile, the odds that President Donald Trump will implement a national strategic Ethereum reserve this year are on the rise, according to blockchain betting platform Polymarket.
Analysts also remain bullish, with some claiming that there will be a new all-time high in the next couple of months, which have historically been positive for ETH prices.
$ETH price is being suppressed, allowing big players to accumulate. Here’s my outlook:
– 4k breakout by end of Feb
– Bullish March, 4k to 5k in days
– Early April, 6.5k
2/3-weeks correction, then a push to 9.5-10k, likely fueled by a catalyst. pic.twitter.com/6fOhdxGdsx— Wolf (@IamCryptoWolf) January 28, 2025
Nevertheless, none of this has alleviated the ETH angst that continues to rise as the asset weakens in terms of price.
Bitcoin Remains Resilient
Bitcoin fell to $100,272 during late trading on Tuesday but recovered again during the following day’s Asian session to reach $102,600 at the time of writing.
Aside from a couple of brief dips, BTC has remained above six figures for the past 12 days or so and is just 6% away from its all-time high.
Februaries have also been very bullish for Bitcoin prices over the past few years, so things could be about to move soon.
This article first appeared at CryptoPotato
