The Connection Between Altcoin Markets and Bitcoin Has Weakened Once Again

This shift could signal an impending major move in the crypto space, as similar patterns in the past have often preceded significant price changes or trend reversals.

The connection between altcoin markets and Bitcoin has weakened once again, according to the latest analysis from crypto research firm Alphractal.

This shift could signal an impending major move in the crypto space, as similar patterns in the past have often preceded significant price changes or trend reversals.

According to Alphractal, when the correlation between Bitcoin and altcoins drops, it has historically been linked to local market peaks, strong upward movements, or heightened volatility. The current situation, therefore, suggests that a major surge could be on the horizon.

In addition, large investors, commonly known as whales, are increasingly shorting Bitcoin, Ethereum, and other altcoins, especially when compared to retail investors. This trend is tracked through the “Whale vs. Retail Investor Ratio,” which has historically risen before substantial market shifts.

According to Alphractal, similar patterns in the past have often indicated upcoming volatility.

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Meanwhile, Alphractal’s analysis of Bitcoin’s “Supply Age Bands” shows a decline in Short-Term Holder Supply (STH), referring to Bitcoin acquired within the last three months. This decrease in short-term supply suggests that fewer investors are currently interested in accumulating Bitcoin.

Historically, when STH levels are high, it reflects a period of market enthusiasm, while low levels often correlate with price corrections.

Alphractal’s insights suggest that the crypto market may be approaching a pivotal change, with whale activity and declining short-term holdings potentially setting the stage for increased volatility or a possible breakout.