Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
ETH/BTC Is The Best Proxy For Measuring Altcoin Market Sentiment – Investor

ETH/BTC Is The Best Proxy For Measuring Altcoin Market Sentiment – Investor

CoineditionCoinedition2024/04/29 12:55
By:Ikemefula Aruogu
  • Daan Crypto Trades believes SOL/BTC is not the appropriate gauge for altcoin sentiment.
  • According to Daan, Solana’s recent growth hardly impacted Bitcoin’s dominance.
  • The investor explained that altcoin seasons are usually short but explosive.

A renowned cryptocurrency investor identified as Daan Crypto Trades on X has argued that the SOL/BTC pair is not the appropriate gauge for altcoin strength in the crypto market. In a recent post, Daan acknowledged SOL’s impressive performance but noted that it did not have a proportionate impact on Bitcoin dominance (BTC.D).

Seeing a lot of people claim $SOL /BTC is a better proxy for general alt strength than ETH/BTC. $SOL performed extremely well and the general alt market underperformed BTC as BTC.D grinded higher.

Therefore, I would not say SOL/BTC is a good gauge for overall altcoin strength at… https://t.co/8KpdnACoOt

— Daan Crypto Trades (@DaanCrypto) April 28, 2024

Daan’s position counters the growing impression that SOL/BTC has become a better proxy for measuring the general altcoin strength than ETH/BTC. According to him, the SOL/BTC idea stems from Solana’s recent performance, which most people consider impressive despite having no significant impact on BTC.D. 

The crypto investor explained that if SOL/BTC led the overall altcoin market surge, BTC.D would not have performed so well recently. He cited that the Bitcoin dominance metric sat at 3-year highs while Solana did more than 10X in the past one and a half years. 

It is essential to note that Daan’s recent post supported his altcoin market analysis, where he confirmed ETH/BTC as the ideal proxy for alt risk or sentiment. According to him, the altcoin season generally lasts a short time. However, he noted that whenever that happens, it is usually explosive.

Daan expressed his point using historical data from the BTC.D chart on TradingView. He showed how swiftly Bitcoin Dominance slipped during a past altcoin season and how the altcoin market consolidated ahead of that period. With his explanation, Daan revealed that the altcoin market gained market cap ahead of the altcoin season, following which the rally began.

BTC.D was at 54.55% at the time of writing, dropping from a recent high of 57.03%, according to data from TradingView . Considering Daan’s analysis, the current trend suggests growing altcoin accumulation that could precede an altcoin season.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Is Microsoft harassing users with AI assistant Copilot?

Share link:In this post: Microsoft is forcing its AI assistant, Copilot, onto Microsoft 365 users in Australia and Southeast Asia, raising subscription prices whether people want the feature or not. Copilot interrupts users like Australia-based YouTuber Alistair Fleming with constant pop-ups, while monthly fees in the region jumped from A$11 to A$16. Microsoft charges $20 per month for Copilot in the U.S. and $30 per user for businesses, but adoption lags far behind OpenAI’s ChatGPT, with just 37 million d

Cryptopolitan2024/12/27 07:22

US stocks tumble as Bitcoin remains stuck at $95k. Is the Santa Rally already over?

Share link:In this post: Bitcoin is stuck around $95,000, down 3.6% in 24 hours, and has been moving between $92,500 and $96,000 after hitting a high of $108,000 earlier this month. Wall Street’s Santa Claus rally fizzled out as the Dow barely rose, the S&P dipped, and the Nasdaq went flat, with rising Treasury yields putting pressure on growth stocks. The top 10 U.S. stocks now make up a record 40% of the S&P 500’s market cap, outpacing the Dot-Com bubble levels, leaving the market dangerously concentrate

Cryptopolitan2024/12/27 07:22

Convicted FTX executives receive reduced sentences

Share link:In this post: The former CEO of Alameda Research, Caroline Ellison, had her two-year sentence reduced due to her cooperation with prosecutors. Ryan Salame, former co-CEO of FTX Digital Markets, also got a year shaved off his initial sentence. The former head of engineering, Nishad Singh, avoided further prison time by testifying against the head of the fraudulent operation.

Cryptopolitan2024/12/27 07:22

Glory days: Why we can’t forget Lightning Network

Bitcoin may be more serious now, but we can’t forget about the Lightning Network

Blockworks2024/12/27 07:11