Bitcoin was mostly flat on Tuesday, in contrast to alternative cryptocurrencies such as ether and Solana’s SOL token, both of which were up approximately 5% over the previous day.
LUNA, the local token of the Terra blockchain, saw a hike of 13% after traders focused on different incentive programs.
Overall, global markets were volatile following the statement from U.S. Federal Reserve Chair Jerome Powell that monetary policy may tighten faster than expected – possibly a bad sign for speculative assets like cryptocurrencies and equities.
Despite brief price fluctuations, a handful of experts are still optimistic about bitcoin.
Nikita Rudenia, co-founder of asset management firm 8848 Invest, said: “As BTC appears to be on track to finish November below its predicted target of $60,000, investors are anticipating that the cryptocurrency will follow its historical trend and end the year on a high note.”
By the end of this year, Rudenia has a $70,000 BTC price target. Analysts were concerned about bearish bitcoin option activity.
“Puts are getting more expensive as market participants focus on hedging spot [positions] or speculating on further downside,” said one expert.
In a recent tweet, Genesis Volatility stated that they “saw a lot of short-term put purchases,” according to Delphi Digital.
During the previous two months, Bitcoin’s market capitalization relative to the overall crypto market capitalization has dropped about 10%, to its lowest level since September.
The dominance of bitcoin has dropped because of its lesser outperformance in recent months.
The transition from bitcoin to alternative currencies is seen by some experts as an indication of a growing risk appetite among investors.
Ether, the second-largest cryptocurrency by market capitalization, was approaching $4,800 and had increased about 5% in the previous 24 hours.
During the same period, BTC was essentially flat. Relative to bitcoin, ether’s technical indicators indicate that there is further upside ahead.
The ETH/BTC ratio is attempting to break above a five-month trading range, as seen in the chart below. A daily closing price of 0.080 or higher could lead to a boost in ETH/BTC if it occurs twice in succession.
