Bitcoin Struggles Under $100,000, Altcoins Offer an Opportunity for Trade

Bitcoin missed the $100,000 target by less than $500 on Friday, November 20. Since its first attempt at hitting the threshold, Bitcoin has slipped nearly 5% lower

Bitcoin’s failure to breach the psychologically critical $100,000 threshold has shifted institutional investor focus from BTC to altcoins. Notably, tokens that surged during the 2021 bull run, such as Decentraland and Sandbox, witnessed a resurgence in trade volume on centralized exchanges like Upbit.

Meanwhile, Ethereum (ETH) saw a spike in open interest driven by surging demand among derivatives traders, which is supported by metrics indicating growing bullish sentiment among market participants. A short-term rally in Ethereum is likely as institutional interest broadens, leading traders to diversify their portfolios with tokens poised for gains this market cycle.

Bitcoin struggles under $100,000, altcoins offer an opportunity for trade

Bitcoin’s first attempt to breach the $100,000 target failed by less than $500 on Friday, November 20. Since then, Bitcoin slipped nearly 5% lower to hit $95,719 on Thursday, November 28.

This week, institutional investors withdrew capital from Bitcoin ETFs, with Farside Investors data showing an outflow of $435.30 million on Monday and $122.80 million on Tuesday.

As Bitcoin consolidates and altcoins from previous bull markets rally, institutional investors are shifting their focus to Ethereum and other alternatives that could yield higher returns in the coming weeks.

Altcoins like Cardano (ADA), Ripple (XRP), Stellar (XLM), and metaverse tokens like Decentraland (MANA) and Sandbox (SAND) saw a spike in trade volume this week on centralized exchanges. South Korean cryptocurrency exchange Upbit recorded several consecutive days of increasing trade volume in the fiat pairs of metaverse tokens and altcoins from the 2021 bull run.

Data from 10xResearch captured the spike and identified the altcoins in the chart below.

Typically, trade activity on South Korean exchanges is a precursor to spot trading across centralized exchanges globally. Altcoins like Sei, Polkadot (DOT), and Dogecoin (DOGE) are gaining relevance among market participants.

Ethereum derivatives traders turn bullish on ETH

Among the altcoins that rallied in the past week as Bitcoin consolidated, Ethereum topped the list. Derivatives traders have become increasingly bullish on Ether, and there is a shift in institutional investor sentiment.

Farside Investor data showed that institutional investors’ interest in Ethereum ETFs is slowly recovering with moderate inflows into the asset. This week, Ethereum ETFs recorded $133.60 million in inflows.

Derivatives market data showed that open interest in Ethereum climbed past $24 billion, marking a four-month high. Even as the Ethereum spot market price is yet to catch up with the open interest, derivatives traders are expecting the ETH price to rally.

Ethereum recorded a spike in its implied volatility between November 14 and 27, while Bitcoin’s IV is relatively flat. Market participants are expecting a likely movement in Ethereum price as Bitcoin consolidates, supporting the bullish thesis for the altcoin.

Over the past eight days, Ethereum whales increased their ETH holdings by 6%, reaching $102.27 million on Thursday. A rise in accumulation by whales is usually considered bullish for a token. Large wallet holders are known to increase their holdings in anticipation of price gains in a token.

Santiment data showed a spike in Ethereum prices in the weeks and months following accumulation by whales, as recorded by the supply held by whales (excluding exchanges) metric.

Recent events point at major win for the Ethereum ecosystem

A U.S. court of appeals overturned sanctions against Tornado Cash, a crypto mixer on the Ethereum blockchain. In 2022, a court accused the firm of laundering over $7 billion for North Korean hackers and malicious entities.

Coinbase’s Chief Legal Officer Paul Grewal stated that Tornado Cash’s smart contracts must now be removed from the sanctions list. U.S.-based individuals will now be permitted to use the privacy-protecting protocol.

Privacy wins. Today the Fifth Circuit held that @USTreasury’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who cares about defending liberty. @coinbase is proud to have helped lead this important challenge. 1/6

With Donald Trump’s victory in the recent Presidential elections, U.S.-based traders are hopeful of a shift in the regulatory stance on crypto and policymaking in 2025. The upcoming developments could act as a catalyst for Ethereum’s price.

Long-term Bitcoin holders are selling their BTC

Long-term holders of Bitcoin decreased their BTC holdings by nearly 3% in November, down from 14.09 million to 13.69 million BTC. As the Bitcoin supply held by this category of holders dwindles, it raises concerns regarding selling pressure on the asset.

However, BTC’s price is yet to see a negative impact from the profit-