Bitcoin Depreciation Continues to Reflect Badly on Altcoin Markets

Bitcoin has tanked down as much as $32,000 during the last 24 hours. This event has been marked as Black Thursday, although Bitcoin has managed to recover, and it is trending at $39,000 at the press time. During the chaos, the altcoin market tanked all across the board, and even silver cryptocurrency that was aiming for a royal take over has gone off-trail from its track vehemently. Thereby, Bitcoin depreciation has set off a worldwide FUD (Fear, Uncertainty, and Doubt).

The total market cap of Bitcoin has lost a massive chunk of $600 billion, placing it in the high range of 32%. As expected, the increasing selling pressure in the crypto exchange platforms is increasing, which resulted in a detrimental effect on the altcoin markets, where average depreciation rates fall under 25 to 45 percent. Rather than creating an ideal environment for altcoins, it put the entire market into the jumble. Somewhere along the lines, Ethereum went to the low position of $2000 while Cardano retracted to $1.05.  

Altcoin Season Turned out to be a Fluke

While Bitcoin was inflicted with continuous corrections, many analysts were anticipating an altcoin season break and ‘Flippening’ to occur. Flippening is a phenomenon that supposes that Ethereum would grow bigger than Bitcoin and take over it eventually. The biggest depreciation was witnessed in the altcoins that are quantified in Bitcoin.

In case Bitcoin manages to recover from its five-month retrenchment period, the altcoin holders would stand to sustain a horrific injury. Meanwhile, despite the claims of analysts, the crypto boomer remains the uncrowned king of the crypto markets. For Bitcoin to break out again, its dominance would need to be set for at least 54.6.

Has Bitcoin Run out of the Institutional Market Favor?

Bitcoin has earned the title of a boomer in the crypto world. The word boomer refers to the fact that the technology is outdated, and many technological innovations cannot be integrated immediately. Interestingly, when Bitcoin crashed spectacularly, it was picked up by financial tabloids and newsrooms all over the globe. The spotlight helped to fertile the ground to set flagship cryptocurrency as a bonafide trade commodity.

However, the future still seems bleak as SEC put the rumors of Bitcoin ETF approval to the bed by claiming that its volatility can be a huge hindrance as an asset. The regulatory agency further added that Bitcoin had developed a reputation for being an increasingly speculative asset class. To add fuel to the fire, JP Morgan, taking note of the CME futures open interest, claims that the tailwind of favor has been shifted from Bitcoin to gold for most institutional investors.

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