A wild altseason continues, with the world’s No. 2 cryptocurrency continuing to lead the market.

  • Ethereum (ETH, Tech/Adoption Grade “A-”) rocketed to a new high above $3,600 and now trades around $3,500.
  • Bitcoin (BTC, Tech/Adoption Grade “A-”) bounced off support but is still trading in a range between $53,000 and $58,000.
  • Bitcoin’s market dominance fell again to 45% as it approaches its late-2017 floor of 37%.

Ethereum has continued its torrid performance, and its dominance in the decentralized finance (DeFi) space has it set to extend its current run to new all-time highs.

Despite tremendous network congestion and sky-high gas fees, the second-largest cryptocurrency by market capitalization is retaining its advantage as first adopter.

Ethereum is trading well above than its 21-day moving average, and there’s no reason to think that a big change will occur with the exceptions of reasonable profit-taking or a market-wide correction.

Here’s Ethereum’s price in U.S. dollars via Coinbase Global, Inc. (Nasdaq: COIN):

Bitcoin has managed to retake its 21-day moving average, which is a positive sign. If it’s able to sustain above this measure despite the outflows into altcoins and the reduction of its market dominance, it’s a highly bullish sign for another potential breakout.

While Bitcoin has struggled lately in comparison with the rest of the crypto market, it has at least recovered from its correction lows under $50,000. While it’s possible we could see a retest of these levels if it breaks below its critical 21-day moving average, it could break out in a big way if the levels hold.

Here’s Bitcoin’s price in U.S. dollars via Coinbase:

Index Roundup

This week marked another extremely strong period for altcoins and the crypto market as a whole. In an unsurprising continuation of altseason, Bitcoin lost ground to the altcoins and its market dominance shrank.

This makes sense as a function of its trading pairs being used to purchase smaller projects and as a side-effect of the hunt for massive gainers during a period with extremely wild price action.

However, Bitcoin’s fundamentals are still extremely strong, and corporations continue to pile it onto their balance sheets.

The Weiss 50 Crypto Index (W50) increased 31.73% as the broader crypto market largely ascended higher.

The Weiss 50 Crypto Ex-BTC Index (W50X) gained 45.69% as Bitcoin notably couldn’t keep pace with most of the crypto market.

Breaking down this week’s performance by market capitalization, we see that the mid-caps outperformed both the large- and small-caps.

The Weiss Large Cap Crypto Index (WLC) grew 26.94%, but it was dragged down by Bitcoin’s comparably sluggish week.

Mid-cap cryptocurrencies were the top performers this week, as the Weiss Mid-Cap Crypto Index (WMC) skyrocketed 61.61%.

The small-caps were finally dethroned for the first time in over a month. Still, the Weiss Small-Cap Crypto Index (WSC) soared a substantial 46.63%, and we could easily see them reclaim their position soon.

The mid-caps were able to perform the best this week, and this is likely due to the mechanics of capital flow in crypto.

Investors pour their fiat money into Bitcoin, where they then target the top large-caps such as Ethereum. Afterwards, investors chase yield in the mid-caps before the small-caps finally go crazy.

We’ve seen tons of money flow into Ethereum over the past two weeks, and we may be starting to see the mid-caps rally more heavily through the rotation.

Still, capital that flows into mid-caps often gets thrown into smaller projects after they appreciate, so it’s very likely we’ll see small-cap cryptocurrencies surge back as the familiar top performer soon. It’s a great sign if the biggest players manage to trade relatively in-line.

Notable News, Notes and Tweets

  • Pomp emphasizes that Latin-American e-commerce giant Mercadolibre, Inc. (Nasdaq: MELI) purchased $7.8 million in Bitcoin.
  • After a wave of interest, Citigroup Inc. (NYSE: C) is considering offering cryptocurrency services to its clients.
  • Corporate crypto activist Square Inc.’s (NYSE: SQ) revenue grew 11 times year over year, highlighted by $3.51 billion in Bitcoin revenue.

What’s Next

The crypto market has been on fire lately, and we’ve seen an explosive altseason thus far. There is currently nothing pointing to a rapid reversal, aside from a healthy correction, so we’ll continue monitoring developments as they unfold.

The flow of capital in crypto usually enters Bitcoin first, where it then trickles into the large caps and other established projects before flowing into the mid- and small- caps. We’re seeing this play out right now.

Ethereum’s scorching hot performance recently is a positive sign that altseason is progressing as expected, with even more flows from Ethereum into less established cryptos likely coming soon.

Despite Bitcoin’s relative stagnation compared to the broader market, it’s a good sign that it’s at least holding steady in a range.

Widespread corporate adoption and institutional demand should help offset outflows, and it may just be a matter of time before the King of Crypto takes off again.


Weiss Ratings does not accept any form of compensation from creators, issuers or sponsors of cryptocurrencies. Nor are the Weiss Cryptocurrency Ratings intended to endorse or promote an investment in any specific cryptocurrency. Cryptocurrencies carry a high degree of risk. The SEC, CFTC and other regulators have expressed concerns with the volatility of the market and the actions of sponsors of specific cryptocurrencies. Be sure to review their official consumer alerts such as the public statement on cryptocurrencies by the SEC.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP