Ethereum ignites altcoin rally as Bitcoin faces macro headwinds
The crypto market is showing signs of divergence as Bitcoin pulls back, leading to increased interest in altcoins.
- Bitcoin is showing signs of a pullback, staying near the $110,000 mark
- Ethereum’s climb to $4,6000 has revived appetite for risk, and altcoins are benefiting
As August draws to a close, crypto markets are starting to diverge. Bitcoin (BTC) is slowly losing momentum, while liquidity is flowing toward Ethereum (ETH) . As of August 27, Bitcoin was down 0.7% over the past seven days, while Ethereum rose 8.24%, breaking the $4,633. In this context, several analysts expect that there are signs that altcoins could benefit in the coming weeks.
According to B2 Ventures founder Arthur Azizov, Ethereum’s rise has fuelled the risk appetite across the crypto sector. For instance, Solana (SOL) was up 15% over that week, and altcoin gains will likely continue if Ethereum remains strong.
“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, Ethereum pull back from recent highs
Both Bitcoin and Ethereum experienced yearly highs in August, with Bitcoin at $124,457 and Ethereum at $4,626. According to Ruslan Lienkha, chief of markets at YouHodler, the recent pullback from these levels is largely a reflection of broader market sentiment.
In particular, U.S. equities recently saw a similar correction from all-time highs during that period. The question remains whether this downturn in equities is just a temporary correction or a more long-term trend.
The key macro catalysts for crypto heading into September remain U.S. inflation, interest rate policy, and labor market data. The interaction of these factors will largely shape overall risk sentiment and, in turn, the trajectory of both traditional and crypto markets,” Ruslan Lienkha, YouHodler
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
U.S. IPO Preview｜Primagrove: Soaring Performance with a 17-Fold Increase, but the $17,000 Cash Pool Raises Concerns
From software outsourcing to integrated software and hardware.
60% of stocks have fallen into a bear market, the seven tech giants are holding up the S&P alone! BTIG: US stocks may be just a "gentle push" away from collapsing
The S&P 500 is just one step away from its all-time high, but under the surface, turbulence is brewing: 60% of its components have already entered a technical bear market, and only 30% have outperformed the index, the lowest since 1991. All of this is being supported solely by the seven major tech giants—which is, in fact, the biggest risk. With crowded positions and the semiconductor sector mirroring the path of the 2000 bubble burst, an accelerated decline could be triggered during the upcoming earnings season at the end of the month. When the market is standing on just one final leg, it doesn't take much force to topple it.
Earnings Season Underlying Currents: ASML (ASML.US) Leads with $34.8 Billion Market Value Fluctuation
Before Wednesday’s market open, seven major companies are expected to report earnings, with anticipated volatility. ASML tops the list with a potential volatility of $34.8 billion, followed by Bank of America, Morgan Stanley, and others. The options market has already priced in the risks in advance.
Crypto prices
More
