Bitcoin's Price Halted at $98K, Yet Influence over Alternatives Remains Strong (Weekend Analysis)
Crypto markets saw some action today, with Bitcoin reaching a multi-month high of over $98,000 but failing to crack the $100,000 mark. The king coin had a wild ride last week, soaring from $84,000 to nearly $98,000 in just a few days, only to stop short and consolidate around $95,000.
Most other altcoins followed Bitcoin's trend today, with AVAX and PEPE experiencing a 3% drop. On a positive note, TRUMP, KAS, and TAO saw gains of up to 4%, while VIRTUAL surged by over 6%.
Bitcoin Hits the Brakes
Bitcoin had been on a tear, breaking through resistance levels left and right. But eventually, the bulls hit a barrier at the $98,000 mark. The crypto has since lost nearly $2,000 and is now hovering around $96,000.
The market capitalization of Bitcoin is hovering above $1.910 trillion, and its dominance over the altcoins has hit a four-year high of almost 62%. This suggests that Bitcoin is still the king of the crypto world, but its failure to break the $100,000 barrier could be bad news for the altcoins.
Altcoins Take a Hit
Most altcoins, including ETH, XRP, DOGE, SOL, ADA, SUI, LINK, and XLM, saw minor losses today. However, AVAX and PEPE took the biggest hits, each losing around 3%. In contrast, TRUMP, KAS, and TAO saw gains of up to 4%, while VIRTUAL surged by over 6%.
The total crypto market cap has lost around $30 billion since yesterday, but it's still well above $3.1 trillion.
Extra Insight: Bitcoin's consolidation at $94K–$95K and its inability to breach $98K could be due to a balance between bullish institutional momentum and short-term profit-taking pressures. While there are strong long-term factors supporting Bitcoin's price, such as ETF inflows and corporate accumulation, over 85% of Bitcoin’s supply is now held at a profit, creating resistance as traders cash in gains[1]. The $98K level represents a psychological threshold where bullish momentum has stalled amid this profit-taking, despite the launch of new institutional ventures like 21 Capital’s $3.6 billion Bitcoin fund[1].
Bitcoin's upward momentum came to a halt after reaching $98,000, and it has since dropped to around $96,000, indicating a sluggish bullish run. This trend culminated in a consolidation phase for Bitcoin, with its market capitalization still above $1.910 trillion and a dominance of almost 62% over other cryptocurrencies.
In contrast, most altcoins like ETH, XRP, DOGE, SOL, ADA, SUI, LINK, and XLM saw minor losses. However, AVAX and PEPE dropped by around 3%, while TRUMP, KAS, and TAO gained up to 4% and VIRTUAL surged by over 6%. This market scenario could be due to the balance between bullish institutional momentum and short-term profit-taking pressures on Bitcoin. Despite this, over 85% of Bitcoin’s supply is now held at a profit, creating resistance as traders cash in their gains. The $98K level is a significant psychological barrier that has stalled bullish momentum amid this profit-taking, despite the launch of new institutional ventures like 21 Capital’s $3.6 billion Bitcoin fund. This interplay of forces offers a fascinating insight into the dynamics of the cryptocurrency finance and technology landscape.
