{"id":11756,"date":"2024-03-19T16:46:32","date_gmt":"2024-03-19T14:46:32","guid":{"rendered":"https:\/\/forklog.com\/en\/bitfinex-highlights-altcoin-strength-and-ethereum-weakness\/"},"modified":"2024-03-19T16:46:32","modified_gmt":"2024-03-19T14:46:32","slug":"bitfinex-highlights-altcoin-strength-and-ethereum-weakness","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitfinex-highlights-altcoin-strength-and-ethereum-weakness\/","title":{"rendered":"Bitfinex Highlights Altcoin Strength and Ethereum Weakness"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Analysts noted a decline in demand for bitcoin ETFs, coinciding with the fall of the leading cryptocurrency.<\/li>\n<li>Altcoins show resilience, while Ethereum demonstrates &#8220;disappointing dynamics.&#8221;<\/li>\n<\/ul>\n<\/div>\n<p>The ongoing decline of Bitcoin since March 14th will test &#8220;institutional appetite,&#8221; potentially leading to a period of price redistribution across the broader crypto market, according to analysts from <a href=\"https:\/\/blog.bitfinex.com\/wp-content\/uploads\/2024\/03\/Bitfinex-Alpha-96.pdf\">Bitfinex Analyst<\/a> in their weekly report.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Stabilization<\/strong><\/h2>\n<p>Experts believe that intense inflows into spot bitcoin ETFs fueled Bitcoin&#8217;s growth. On March 12th, the daily figure exceeded $1 billion.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/lWYApwtaLuqtFWGpcea01YPvE_kb2zblW77qjCFxJrVlHJlS3qLEFj78OZ48FjeL-PTK5ER9Cpmpe0ScZS1fcdJxCY2PxrvglJcKfF0y4zWtLILTk-juWe9KzihZCYz1hk41eHBsY2tZgpWeFBt-MwY\" alt=\"\u0412 Bitfinex \u0443\u043a\u0430\u0437\u0430\u043b\u0438 \u043d\u0430 \u0441\u0438\u043b\u0443 \u0430\u043b\u044c\u0442\u043a\u043e\u0438\u043d\u043e\u0432 \u0438 \u0441\u043b\u0430\u0431\u043e\u0441\u0442\u044c Ethereum\"\/><figcaption class=\"wp-element-caption\">Inflows into various ETF products for 2024. Source: Bitfinex.<\/figcaption><\/figure>\n<p>Two days later, the leading cryptocurrency peaked at around $73,500 before plummeting by 14% to $63,000.<\/p>\n<p>Bitfinex noted a stabilization in bitcoin fund flows since the end of last week, indicating a decrease in new investment inflows. This shift may suggest a leveling off of the initial surge of institutional interest.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/0zYofbR4gxatgVr6UlndPaVwpTGsJBmj1EyCJyictjc6LNVRv-yvzNMtEQ0lLvlJ2xvgUra8pY2KF8Qc5VKWsdfG3NQ39VLetbGN-w0KTivahoqSwTb1KvLNWgm9L1eRryjwRXy3XufZRBVwRhV8T_w\" alt=\"\u0412 Bitfinex \u0443\u043a\u0430\u0437\u0430\u043b\u0438 \u043d\u0430 \u0441\u0438\u043b\u0443 \u0430\u043b\u044c\u0442\u043a\u043e\u0438\u043d\u043e\u0432 \u0438 \u0441\u043b\u0430\u0431\u043e\u0441\u0442\u044c Ethereum\"\/><figcaption class=\"wp-element-caption\">Inflows into spot bitcoin ETFs. Source: Bitfinex.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;One hypothesis for the slowdown [in inflows] is that traditional investors have become cautious, recognizing the potential for a significant bitcoin correction. Data on flows in the coming week will be crucial for understanding institutional sentiment towards the leading cryptocurrency, especially regarding the recent downturn,&#8221; experts emphasized.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Strong Altcoins, Weak Ethereum<\/strong><\/h2>\n<p>Ethereum&#8217;s dynamics have often been a harbinger of potential altcoin growth, analysts stated. However, in the current cycle, this correlation has somewhat weakened due to the rising popularity of other first-layer blockchains.<\/p>\n<p>On March 14th, the Total3 index, which tracks the capitalization of all cryptocurrencies excluding Bitcoin and Ethereum, reached a local high of $788 billion.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/TgLHXSlkqsv2nosYHL693Ocs7kfMWuKAkyetPQfWeRrmq-kMXnSwLRIvlxymNiwJi658G5PdL8ZGoP-vheM3MN6aI28jJUe-U52aGa2LmKuoQA5JxfTdv6D-XFZc2Y0BOA5AhaZi0ipfeCIu_tjKw48\" alt=\"\u0412 Bitfinex \u0443\u043a\u0430\u0437\u0430\u043b\u0438 \u043d\u0430 \u0441\u0438\u043b\u0443 \u0430\u043b\u044c\u0442\u043a\u043e\u0438\u043d\u043e\u0432 \u0438 \u0441\u043b\u0430\u0431\u043e\u0441\u0442\u044c Ethereum\"\/><figcaption class=\"wp-element-caption\">Total3 Index. Source: Bitfinex.<\/figcaption><\/figure>\n<p>During the correction, the indicator showed resilience compared to digital gold, noted Bitfinex.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This trend highlights the diversification of today&#8217;s market situation, where altcoins are gaining momentum and attracting significant capital inflows. The current cycle&#8217;s peak is now only 6.5% away from the April 2022 high of $837.5 billion. If it surpasses this level, altcoins will enter a &#8216;mania phase.&#8217; [&#8230;] This could potentially lead to exponential growth in the sector&#8217;s capitalization and investor interest,&#8221; researchers added.<\/p>\n<\/blockquote>\n<p>The leaders in growth over the past week were TON, NEAR, SOL, AVAX, APT, and BNB.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/GJmb4dEhiNd5BMo_3oNqwy1aARZ9Ipf1ZCiB0lVHSLgKqcWnmzQp-Pmmt7HL2u3twTXPyMQoBaXKJwnI3DgL3ztRotG-RjpK-oKy0sba4xEINGuRUleIfEMo4vkUI6AFjeYoSLleaOS8d5wGrge-KPs\" alt=\"\u0412 Bitfinex \u0443\u043a\u0430\u0437\u0430\u043b\u0438 \u043d\u0430 \u0441\u0438\u043b\u0443 \u0430\u043b\u044c\u0442\u043a\u043e\u0438\u043d\u043e\u0432 \u0438 \u0441\u043b\u0430\u0431\u043e\u0441\u0442\u044c Ethereum\"\/><figcaption class=\"wp-element-caption\">Altcoin price dynamics. Source: Bitfinex.<\/figcaption><\/figure>\n<p>Regarding the second-largest cryptocurrency by market capitalization, the ETH\/BTC trading pair showed &#8220;disappointing dynamics,&#8221; according to Bitfinex.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/RIQkajVCxr-GnSd_Y225TSry9A9tw7preYECypMiVdkAFl9Gr7DfBjP1Lhs78xl4ftzzUZ8w7CrNP8Uva0OGD1JqOgJnWYV8wwPToF_Gav3p8EVdBes-db9LZda4acLMAyec81jvPDz3X1GglzaNUVc\" alt=\"\u0412 Bitfinex \u0443\u043a\u0430\u0437\u0430\u043b\u0438 \u043d\u0430 \u0441\u0438\u043b\u0443 \u0430\u043b\u044c\u0442\u043a\u043e\u0438\u043d\u043e\u0432 \u0438 \u0441\u043b\u0430\u0431\u043e\u0441\u0442\u044c Ethereum\"\/><figcaption class=\"wp-element-caption\">Weekly ETH\/BTC chart. Source: Bitfinex.<\/figcaption><\/figure>\n<p>Experts observed that the activation of the Dencun update failed to provide sufficient momentum for Ethereum&#8217;s price growth. ETH\/BTC quotes are moving towards the bear market low of 0.049 BTC, which was already tested on January 9th, shortly before the launch of spot bitcoin ETFs.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;A positive aspect is the strong support for BTC\/ETH at this level, and other Ethereum-based projects are performing well. Additionally, on-chain metrics suggest an optimistic narrative for the blockchain,&#8221; the report states.<\/p>\n<\/blockquote>\n<p>On March 11th, analysts recorded a record outflow of 154,000 ETH from centralized exchanges. This implies a reduction in available supply on <span data-descr=\"centralized exchanges\" class=\"old_tooltip\">CEX<\/span>, which, amid stable or rising demand, could positively impact the asset&#8217;s price, they believe.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/LTmmtP1ChJuvZvszOYpNxMMILAaR_hruca6yo40FFjBXmgDY0mXoveyfLRMvYm-kwoWPsr37blD1AdCpDuqdc0Gmp7OJM8XXXPxGm7IYoCSm2WFi6GB9jaQVBGLA9IvW_10OOrpiTjuXvytjHLuo3Ao\" alt=\"\u0412 Bitfinex \u0443\u043a\u0430\u0437\u0430\u043b\u0438 \u043d\u0430 \u0441\u0438\u043b\u0443 \u0430\u043b\u044c\u0442\u043a\u043e\u0438\u043d\u043e\u0432 \u0438 \u0441\u043b\u0430\u0431\u043e\u0441\u0442\u044c Ethereum\"\/><figcaption class=\"wp-element-caption\">Ethereum outflow from CEX. Source: Bitfinex.<\/figcaption><\/figure>\n<p>Earlier, CryptoQuant reported a reduction in Ethereum issuance to its lowest level since August 2022 following the Dencun launch. Over the past month, ETH market inflows fell to -0.88% compared to the average -0.25% since the implementation of the hard fork The Merge.<\/p>\n<p>Previously, analysts at Standard Chartered raised their 2024 targets for Bitcoin and Ethereum to $150,000 and $8,000, respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts noted a decline in demand for bitcoin ETFs, coinciding with the fall of the leading cryptocurrency. Altcoins show resilience, while Ethereum demonstrates &#8220;disappointing dynamics.&#8221; The ongoing decline of Bitcoin since March 14th will test &#8220;institutional appetite,&#8221; potentially leading to a period of price redistribution across the broader crypto market, according to analysts from Bitfinex [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11755,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[20,18,95,46,1150],"class_list":["post-11756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-altcoins","tag-bitcoin","tag-bitfinex","tag-ethereum","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/11756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=11756"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/11756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/11755"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=11756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=11756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=11756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}