- January 12, 2024
- Posted by: [email protected]
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The recent downturn in altcoins, characterized by substantial losses, unfolds against a backdrop of a variety of market influences, including impactful reports and a fabricated announcement regarding a Bitcoin (BTC) exchange-traded fund (ETF) on social media. These developments have sparked a wave of market corrections in the early days of 2024. The tumultuous landscape is further exacerbated by the on-chain data pointing towards a decline in asset prices, with numerous altcoins experiencing significant drops of more than 10% over the past week.
Solana (SOL), previously riding high as the fourth most valuable cryptocurrency by market capitalization, witnessed a notable setback with a 10.64% decline in the last week and an additional 3% drop in the past 24 hours. Despite these setbacks, the coin has still maintained an impressive 34% growth over the last 30 days.
Ripple (XRP) faced an 11.59% loss in the past week and a 1% decline in the last 24 hours, contributing to an overall 10% decrease in the last 30 days. In contrast, Binance Coin (BNB) showcased resilience, reclaiming its fourth position in market capitalization with a remarkable 24% gain over the last 30 days. This positive performance is attributed to increased spot volumes on the Binance platform.
Cardano (ADA) and Avalanche (AVAX) bore the brunt of larger losses, experiencing declines of 18.33% and 16.47%, respectively, amidst the ongoing market liquidations. Despite these setbacks, both coins have witnessed increased trading volumes after recovering from the bearish trends triggered by industry setbacks in 2022 and broader macroeconomic factors. Cardano’s growth is particularly noteworthy, fueled by heightened institutional interest and a compelling developmental roadmap that positions it as a potential competitor to Ethereum (ETH).
Avalanche’s significant surge in 2023, driven by real-world asset tokenization initiatives and partnerships with traditional institutions, contrasts with its recent losses during the market-wide liquidations. However, these challenges may be temporary, given the broader positive trajectory witnessed in the past.
In a surprising turn of events, Ethereum (ETH) emerges as a standout performer among the top 20 altcoins, recording gains in the last seven days. Trading at $2,405, Ethereum registered a 5% increase in the last 24 hours and a modest 1.2% rise in the last seven days. Ethereum’s institutional products have garnered positive attention, with inflows totaling $30 million in the first week of the year, building on the momentum established in December.
The prevailing sentiment of widespread liquidations in the market is attributed to the Matrixport report predicting BTC ETF application rejections in January. Additionally, the fallout from the hack of the Securities and Exchange Commission’s (SEC) Twitter account has intensified market turmoil, following a fraudulent post about ETF approval. These events collectively contribute to the market’s current state of uncertainty and heightened volatility, shaping the trajectory of altcoins in the early weeks of 2024.
