Altcoins have been moving higher in recent hours as Bitcoin (BTC) remains close to $33,000. Ethereum (ETH), Polkadot (DOT), Cardano (ADA) and Chainlink (LINK) became the largest gainers among the top 10. Meanwhile, Decentraland (MANA) registered the largest gain among the top 100 by growing as much as 36% in the last 24 hours.
Altcoins Outperform Bitcoin
It seems to be a good time for altcoins. While Bitcoin remains stable close to $33,000, altcoins are registering gains in recent hours. Some of them, as we mentioned before, are even growing by over 10%.
Let’s remember that Bitcoin registered a massive price increase in recent months. The virtual currency grew from $12,000 to $40,000 in a short period of time. During that period, BTC outperformed all the other virtual currencies.
Things seem to be changing now as fundamentals become better for altcoins. Smaller coins and projects are continuing with their work trying to offer better services and products to the community. This can be seen with Polkadot, Chainlink, Cardano and Decentraland.
Nevertheless, this does not mean that Bitcoin fundamentals are weaker. Indeed, countries continue to print large amounts of money out of thin air. Furthermore, large companies continue to invest in Bitcoin. They do not want to be left behind, and they are continuously purchasing BTC.
Additionally, Glassnode reported that Bitcoin is seeing the largest depletion of liquidity since years. According to the company, in the last 30 days around 270,000 BTC moved to entities considered holders. This outflow of funds from exchanges has allowed the price of Bitcoin to reach an all-time high of over $41,000 a few weeks ago.
Furthermore, 78% of the Bitcoin supply is considered not liquid. This means that 14.5 million BTC is held by illiquid entities, as reported by Glassnode. Furthermore, the company explains that there is also a clear relationship between Bitcoin liquidity and the BTC market.
If many Bitcoins are illiquid, then, it is possible for a supply crisis to emerge. This could reduce the selling pressure of BTC in the market. In this way, the price of BTC could certainly have higher growing possibilities.
At the moment, Bitcoin has a market valuation of $616 billion and a price per coin close to $32,900. Other virtual currencies such as Ethereum, Cardano, Chainlink and Polkadot are moving higher. Whether to know if this is a new altcoin bull run we would have to wait.