Altcoins rally across the board as bitcoin consolidates near $84,000
Bitcoin has consolidated near $84,000, leading to a rotation of capital into altcoins as traders seek higher returns. Despite a major exchange hack at Bitget, the broader crypto market remains bullish amid a supportive macroeconomic environment.
Why it matters
This trend illustrates typical market cycles in cryptocurrency where capital flows from established assets to speculative ones, impacting investor portfolios and exchange security practices.
The rotation follows the pattern of previous cycles, in which capital moves into more speculative bets once bitcoin has run hard and stalled, with the cost of holding a long position through elevated funding pushing traders to rotate.
Bitcoin has climbed from below $63,000 in August to almost $87,000 on Tuesday and has gone sideways since, and altcoins are benefitting as a result, CoinMarketCap's altcoin season index reading 56 out of 100 against 45 a week ago and 38 a month ago, its highest in more than three months.
Chainlink LINK $14.05 , internet computer (ICP) and bittensor (TAO) drove the CoinDesk Computing Index (CPUS) 9.5% higher over 24 hours, with the DeFi Select Index (DFX) up 8.7%, both more than three times the blended benchmark's 2.5%.
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