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Investors Dumping Altcoins As Crypto Rally Pauses
Cryptocurrency prices have been on a rollercoaster ride in recent years, with record highs and steep declines. The latest trend appears to be a pause in the rally, with altcoins taking the brunt of the hit. In this article, we explore why investors are dumping altcoins and what it means for the crypto market as a whole.
The Rise of Bitcoin and Ether
At the end of 2022, the cryptocurrency market was worth about $828 billion, a sharp decline from its peak of $2.3 trillion earlier that year. Since then, the market has rebounded somewhat, with bitcoin and ether leading the charge. These two cryptocurrencies now make up 63% of the total market, up from 55.8% at the end of last year.
Bitcoin and ether have gained popularity among institutional investors, with many large corporations and investment funds buying into these cryptocurrencies. This has given them a level of stability that other altcoins lack, as investors view them as a safer bet.
Why Altcoins Are Struggling
Altcoins, on the other hand, have been struggling in recent weeks. This is partly due to the risk-off sentiment that has taken hold in the market, with investors looking to reduce their exposure to riskier assets. Altcoins are seen as riskier than bitcoin and…
