Outside Source
Analysts at the Bitfinex crypto exchange say that alternative cryptocurrencies (altcoins) have remained resilient amid Bitcoin’s (BTC) approximately 12.5% correction in the past week.
According to the latest Bitfinex Alpha report, the altcoin market’s resilience is demonstrated in the Total3 index, which reached a new cycle-high market capitalization of $788 billion on March 14. Although the index has fallen by 14% due to the broader market correction, its plunge is less than BTC in absolute terms.
Altcoins Show Remarkable Resilience
The Total3 index tracks the price performance of all crypto assets except BTC and Ether (ETH). The index’s new cycle peak represents a 74.23% rise from its highest point during the bear market. It is also 6.5% shy of the April 2022 record of $837.5 billion.
Bitfinex said the trend indicates a significant growth in investment in altcoins and the diversifying landscape in the crypto market. If the Total3 index smashes its all-time high of $837.5 billion, altcoins will transition into the mania phase characterized by heightened investor enthusiasm and substantial gains across the sector. This can lead to exponential growth in altcoin valuations and investor interest.
While altcoins experience remarkable growth, ETH has failed to record substantial gains following the Dencun upgrade on March 13. Analysts said the upgrade did not provide a narrative strong enough to push the cryptocurrency’s price further up when most altcoins are performing well.
By press time, ETH/BTC prices had moved toward their bear market low of 0.049 BTC, a level tested on January 9, just before the spot Bitcoin exchange-traded funds (ETFs) launch. Regardless, on-chain metrics suggest a bullish narrative for ETH because other Ethereum-based altcoin projects are performing well, and there is strong support for ETH/BTC at its current level.
Bitcoin ETF Flows Stabilize
On the other hand, Bitcoin has lost almost every gain it amassed in the first two weeks of March. When writing, data from CoinGecko showed BTC had slumped more than 7% in the past 24 hours and hovered around $63,100. Bitfinex said the 12.5% fall is the asset’s second largest drop since the approval of the spot Bitcoin ETFs, with the largest being a single-day decline of 15%.
Meanwhile, Bitcoin ETF inflows have stabilized recently, indicating an equilibrium in the influx of investments.
This article first appeared at CryptoPotato
