Bitcoin down by 1.3% on Monday morning, on track to record its biggest daily decline in this week after a good upward hype, due to a wave of selling in the session that affected cryptocurrencies and other risk assets , such as stocks.
The price of the world’s most famous cryptocurrency fell 4.2% in its last quote, to $63,650, after hitting a two-week low of $68,934, while ether fell 1.3%, to $2,476.
So far this year, bitcoin is still up 53% as investors have flocked to U.S. exchange-traded funds backed by spot bitcoin.
The price hit an all-time high of nearly $74,000 on Thursday, prompting some profit-taking, along with a slew of U.S. data releases suggesting the Federal Reserve may not cut interest rates this year as much as previously thought.
In the last week, bitcoin has lost almost 8%, its biggest weekly drop since September, while ether has dropped 14% following an update to the underlying Ethereum network .
However, performance has not been so weak across cryptocurrencies as a whole.
Smaller tokens, also known as altcoins , have attracted flows of their own. The solana network’s sol token has gained 18% in the last week, while avalanche’s avax coin is up 16%, according to Coingecko.
According to data from Coingecko, Solana’s native token, SOL, has witnessed an impressive 18% increase in its valuation within the last week alone. This surge comes amidst growing interest in the Solana network, known for its high-speed and low-cost transactions, as well as its support for decentralized applications (dApps).
As more developers and users flock to the Solana ecosystem, the demand for SOL tokens has correspondingly risen, driving up its price.
Similarly, Avalanche’s AVAX coin has seen a notable upward shift, boasting a 16% gain in value over the same period. Avalanche, a platform designed to enable the creation and trading of customizable blockchain networks and decentralized applications, has been gaining traction in the crypto community.
With its focus on scalability, interoperability, and security, Avalanche has attracted investors seeking alternatives to established blockchain platforms.
The recent rally in altcoins like SOL and AVAX underscores the dynamic nature of the cryptocurrency market, where smaller projects can experience rapid growth and garner attention from investors seeking high potential returns.
While Bitcoin and Ethereum continue to dominate the crypto space, altcoins like Solana and Avalanche offer unique value propositions that resonate with users and investors alike.
“In light of bitcoin’s recent all-time high and subsequent correction, we anticipate a period of market recalibration as investors seek balance amid unprecedented inflows into spot bitcoin ETFs,” said analysts at the Bitfinex exchange in a note.
