Ethereum ignites altcoin rally as Bitcoin faces macro headwinds
The crypto market is showing signs of divergence as Bitcoin pulls back, leading to increased interest in altcoins.
- Bitcoin is showing signs of a pullback, staying near the $110,000 mark
- Ethereum’s climb to $4,6000 has revived appetite for risk, and altcoins are benefiting
As August draws to a close, crypto markets are starting to diverge. Bitcoin (BTC) is slowly losing momentum, while liquidity is flowing toward Ethereum (ETH). As of August 27, Bitcoin was down 0.7% over the past seven days, while Ethereum rose 8.24%, breaking the $4,633. In this context, several analysts expect that there are signs that altcoins could benefit in the coming weeks.
According to B2 Ventures founder Arthur Azizov, Ethereum’s rise has fuelled the risk appetite across the crypto sector. For instance, Solana (SOL) was up 15% over that week, and altcoin gains will likely continue if Ethereum remains strong.
Bitcoin, Ethereum pull back from recent highs
Both Bitcoin and Ethereum experienced yearly highs in August, with Bitcoin at $124,457 and Ethereum at $4,626. According to Ruslan Lienkha, chief of markets at YouHodler, the recent pullback from these levels is largely a reflection of broader market sentiment.
In particular, U.S. equities recently saw a similar correction from all-time highs during that period. The question remains whether this downturn in equities is just a temporary correction or a more long-term trend.
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