If you have ever invested in cryptocurrency, you know that this type of trading can be a big roller coaster, and this week has proven it once again.
Bitcoin took a hit this weekend and is now recovering by going up and down as traders wait for the third Bitcoin futures ETF to appear. This exchange-traded fund, known as VanEck Bitcoin Futures ETF, launched on Tuesday, and it will trade as XBTF. Analysts have said that after this is released, they expect the price of Bitcoin to continue to climb based on how the cryptocurrency has reacted to the release of other ETFs.
Other Cryptos are Rising Now, Too
Just last week, there was another investment fund record set, as investors put in more than $1.47 billion into crypto investment funds. These investors wanted to get ahead of the game as the first US based Bitcoin futures ETF was launched. Other funds, including Solana’s SOL token, saw a huge influx as well.
Analysts are also taking a look at the altcoins out there, which are actually starting to perform even better than Bitcoin. According to Anders Nysteen, an analyst from Saxo Bank, “The crypto market is turning from being dominated by short-term traders who want to ride the speculative trends to longer-term investors who value the technical capabilities of the different blockchains, challenging bitcoin’s market dominance.”
Records are Bring Set
With almost $1.5 billion invested into digital assts last week, several records were shattered. Most of the money went into Bitcoin-focused funds, which saw about $70 million the previous week.
Speaking of Bitcoin, which is often considered the dominant cryptocurrency out there, the dominance ratio fell last week to 45%. This is the measure of Bitcoin’s market capitalization compared to the entire crypto market. This is due to the positive performance from several altcoins including SOL and ETH.
In fact, this was so obvious that some traders have even started to pick up those altcoins, which shows that they are willing to take a risk with their money. The question is this – can these altcoins sustain the roller coaster crypto market?
We aren’t sure. Back in 2018, we saw something similar, which began the crypto bear market. At the same time, Bitcoin dominance rose up as people began to drop the altcoins and put their money into Bitcoin, which they saw as safer.
Currently, the dominance ratio of Bitcoin is falling from a high of 48% in July, which is when we saw a stabilization of crypto prices. Back in early 2018, however, traders were buying up altcoins that were lagging behind Bitcoin. So, some analysts expect that altcoins will once again begin to rise to prominence.
Just this past Sunday, the altcoin Shiba Inu hit a record high trading at $0.0000455, which broke the previous record from May, 2021. In just 24 hours it rose by as much as 50%, and when we look at the month, it had risen almost 500%. The reason? It’s said that Robinhood will soon list SHIB on its popular platform.
Another altcoin, Solana, also hit a new high in the past week. This altcoin hit a record on Monday. This token, backed by Sam Bankman-Fried, the founder of the FTX crypto exchange, traded at $218.9. In total, the value of Solana rose to more than $13 billion.
We should also mention Ether, too, which also hit a new all-time high last week. This, the native crypto of Ethereum blockchain, hit its record high of $4,361 on the 21st of October.