BlockBeats news, on September 9, Bitfinex released a report stating that “Bitcoin fell 10.7% in the first week of September, continuing the downward trend since late August. However, this decline also pushed the price to a critical The price fell below $56,711, a level previously seen on May 1 that had previously triggered a swift rally. As expected, the sell-off resulted in a reduction in leveraged positions, suggesting the market may be approaching a local level. Bottom. However, we believe that the U.S. stock market, especially the S&P 500 – which last week had its worst weekly performance since March 2023 – will be critical to Bitcoin’s short-term direction. Bitcoin Price vs. Traditional Finance. The market’s correlation remains, and last week’s significant spot ETF outflows indicate that traditional financial investors are reducing their positions in cryptocurrencies. Notably, Bitcoin ETF outflows have reached $706.1 million since August 27. The cumulative spot volume balance showed a downward trend, indicating a large amount of spot selling.
In contrast, the altcoin market has shown resilience. During last week’s Bitcoin sell-off, Bitcoin’s market capitalization share (a measure of Bitcoin’s market value relative to the rest of the crypto market) fell by 1.3%. In contrast, the market capitalization of other crypto assets (excluding the top 10 currencies) increased by 4.4%. It can be said that this change hints at a possible market landscape shift, with investors looking for value in altcoins rather than flocking to Bitcoin during the decline.
However, altcoin open interest has also fallen 55% from its all-time high, indicating low speculative interest and possible seller exhaustion. The ETH/BTC ratio, a proxy for the altcoin market, remains below its 365-day simple moving average, reflecting ETH’s overall poor performance since the merger.
However, if Bitcoin dominance has indeed reached a local high, then we could see altcoins outperform Bitcoin in the coming months, potentially setting the stage for a Q4 bull run, provided macroeconomic pressures ease.”
