When Bitcoin was going through a dull phase, the world saw the emergence of various other cryptocurrencies, called altcoins, that seemed promising. People flocked to buy them, and Bitcoin was being overshadowed by these tokens.
But tables seem to have turned as the bullish behavior of Bitcoin for the past few days have made it the most popular again. Bitcoin has risen to a price of $5,650 and apparently it is still rising for the better. While its good news for those who were trading in Bitcoin, altcoin owners will see losses they had not anticipated. Those who bought the altcoins at their peaks last year would suffer the most.
The Co Relation between bitcoin and Altcoins
Altcoins were shadowing Bitcoin in its stagnant phase for the last few months, would rise and fall with Bitcoin. This went on until the day Bitcoin broke the resistance and met the $1000 mark. The dominance of Bitcoin started, and altcoins seem to have suffered due to that.
Some analysts have also warned that this bearish downfall of altcoins is just the beginning and as Bitcoin progresses further, we would see new lows hit every now and then.
This shows the volatility that cryptocurrencies face and how rapidly they rise and fall. Months ago it was Bitcoin that was taking the fall, and the altcoins were reaping profits, and now, after just months, it is the other way round.
What do you do
If you have altcoins assets, now would be the time to let them go. If the analysts are right and this is just the beginning, the losses in the future would be harder than today and blunt. It’s better to save yourself while you can and get away with the little losses you have incurred so far. There’s a time for everything and this time is probably Bitcoin’s.
However, May hasn’t been very kind to Bitcoin in the past. As we reach the end of April with Bitcoin green or the third consecutive month, it’s difficult to stay confident in the month of May. In the past, selling in may have never been profitable, and it might go red for some time too.
So, the question now is, where do altcoins go? If they suffered when Bitcoin rose, is it possible that they would see a better light if Bitcoin does end up red in May? We can only imagine. But maybe that could be the case and if you think that way selling your altcoins now wouldn’t be that wise, would it?
There’s a risk involved, there always is. And only time will tell who gets the bigger piece of the pie.