October 11, 2021
Cryptocurrencies: Daily Update
Bitcoin (BTC) has been a machine, starting October at $43,300 and currently sitting just below $57,000 (a 31.5% increase over 11 days).
Bitcoin’s dominance of the overall cryptocurrency market cap has steadily increased this month as well, a clear indication of altcoins struggling to keep up. Bitcoin’s market cap dominance has grown 4% since October 1st, while the #2 crypto by market cap Ethereum (ETH) has seen a 1% decrease.
You can clearly see the inverse relationship between Bitcoin and Ethereum’s market cap dominance. However, just because Bitcoin is going up does not mean that Ethereum will suffer.
Over $300 Billion has entered the crypto market in the past two weeks, meaning that Bitcoin is simply being favored amongst the traders and investors that are joining the market now.
In fact, Ethereum’s market cap has increased by nearly $50 Billion in October alone.
Don’t be deterred by altcoins losing pace vs. Bitcoin. The most obvious reason for Bitcoin’s current outperformance is the major uptick in institutional investment which will favor the market leader over smaller projects.
Coins to Watch: Solana (SOL) and Ethereum (ETH) to break out from recent consolidation and lead an altcoin recovery
Today’s Winners: Solana and Polkadot (DOT) both green on the day while most of the market suffers, showing potential strength in DeFi (decentralized finance) altcoins
Today’s Losers: Ethereum at risk to lose $3,500 support, could lead to lower support at $3,300