Altcoins hit new highs after bulls kick Bitcoin price back above $50K
Crypto-currency investors breathed a sigh of relief on the 26th. Last April, when a sharp reversal in the price of bitcoin (BTC) was accompanied by a rally in the overall market, most alcoctions saw green. It is likely that the breakout was supported by bullish estimates from JPMorgan analysts and PayPal’s announcement that demand for crypto-currency purchases exceeded expectations.
Data from Cointelegraph Markets and TradingView shows that after bouncing off a low of $47,000 on Sunday night, bitcoin moved back above $50,000 support in the early hours of trading on Monday and was above $53,500 by lunchtime, while Ether (ETH) regained $2,500.
4 hour chart BTC/USDT. Source: TradingView
Last week’s market boom did little to slow the mass adoption of cryptocurrencies, with news such as NFL draft prospect Trevor Lawrence signing a deal with crypto-currency wallet tracking platform Blockfolio and hotels in Nigeria announcing plans to accept bitcoin as payment.
chain analysis followsbitcoin’s bullish momentum
Data from Glassnode shows that channel data volume and average transaction fees for the bitcoin network hit new records last week, as the network continues to recover from a mempool outage caused by the hashrate collapse resulting from the power outage in China.
Average transaction costs on the bitcoin network. Source: Glassnode
An analysis of the age ranges issued, which indicate how long BTC has been in a portfolio, shows that the most recent token holders have been shaken by the recent decline, while portfolios held for more than a month have seen a decline in trading activity.
The data also shows that spending on handbags, which has held steady for more than six months, has not increased significantly since the market contracted in February.
Additional bullish sentiment can be seen by looking at mining accumulation, which according to Glassnode is at its highest level since mid-2018.
Change in net position of minor. Source: Glassnode
Overall, the analysis shows that it was the new hands in the market who were rattled by last year’s correction, while more experienced cryptocurrency traders were happy to hoard BTC from those worried about further price declines.
Altcoins rise as bitcoin regains its footing
Bitcoin’s struggles over the past week have given altcoins the chance to rise and gain market share, with a number of coins reaching new highs and transaction volume on decentralized exchanges on the rise.
Ethereum-based lending platform DeFi Compound (COMP) jumped 17% overnight to a new all-time high of $671, while Tier 2 solution Polygon (MATIC) jumped 68% to a new all-time high of $0.576.
Daily indicators for the crypto-currency market. Source : coin360
Solana-based decentralized exchange Serum (SRM) has seen the price of its own tokens reach a new high of $11.47, thanks to increased activity on the Solana (SOL) blockchain network.
Solana’s price rose more than 120% last week, reaching a record high on the 25th. April reached a new high of $48.46 as the ecosystem continues to grow and new projects are launched on this Tier 1 competitor to Ethereum.
The total capitalization of the cryptocurrency market is currently $2.004 trillion and bitcoin’s dominance is 50.3%.
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