Altcoins Sold as Crypto Rally Surges: Investors Turn Attention to Risky Strategies

Altcoins Sold as Crypto Rally Surges: Investors Turn Attention to Risky Strategies. Investors have sold off altcoins as part of the crypto rally. The prices of cryptocurrencies have increased by 7% this week, but market leaders are focusing on other tokens besides Bitcoin and Ether as investors adopt risk-averse strategies.

Altcoins Sold as Crypto Rally Surges: Investors Turn Attention to Risky Strategies

Bitcoin and Ether now make up 63% of the $1.24 trillion cryptocurrency market, up from 55.8% at the end of last year. After a pullback this week, which included extensive volatility in the market and other disruptions to digital assets, it has bounced back from lows of around $828 billion at the end of 2022.

On Thursday, the bond market showed clear signs of a risk-off sentiment. The yield on the 10-year Treasury bond fell by 6 basis points to reach 3.55%. Investors are concerned that the United States may default on its debt, as the White House and House Republicans are fighting over increasing the borrowing limit. In January, the US reached its $31.4 trillion legal borrowing limit, but Treasury is able to avoid a crisis by cutting emergency spending.

Meanwhile, the increasing number of buyers in the bond market is raising default risk, which is not a good situation for Washington. However, bondholders often benefit from volatile markets. Short-term returns for three-month bondholders have reached 5.06%, indicating a possible decline in long-term bond prices.

After analyzing extensively, it has been observed that the stock market was relatively low, but fluctuations can be observed in cryptocurrency mining shares. Some shares, including those of permanent bitcoin miners like CleanSpark, have dropped. Last week, it was seen that after investors’ confidence in the digital asset sector turned positive, some investors returned in the profits of 40%, causing shares of companies such as Bitfarm, Riot Platform, and Marathon Digital to fall more than 8%.

Business software companies like MicroStrategy, which has a 140,000-token ownership, have also seen a 6.3% decline, which is worse than cryptocurrency. Bitcoin’s value also dropped by 3.6%, and it is now at $28,234.55 per coin. Additionally, major cryptocurrencies hit their peak before stabilizing at $30,365 on Tuesday, experiencing a steady decline, which brought it to the lower levels of the past ten days.

Ethereum fell 2% to $1,938.37, following suit with the rest of the market. This was a minor dip compared to Bitcoin. The main reason for this was the withdrawal of F-Stack crypto locked on Ethereum. Nansen reported that the blockchain was relatively unaffected, with only around $1.6 billion of the total $38 billion being withdrawn. These coins had been locked since December 2020 but were released as part of Ethereum’s recent upgrades.

Last week, Ethereum gas fees also increased. The main reason for this was memecoin minting. The average gas fee paid to the Ethereum network was 81.94 gwei on Wednesday, more than double that of Monday. One gwei is a fraction of Ethereum, equal to one billionth of a coin.

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