Bitcoin Rebounds While Altcoins Gain Momentum: What’s Next for the Market?

Bitcoin (BTC) started the New Year on a positive note, climbing around 1.5% in the past day to $96,700, recovering from last week’s dip.

Despite this rebound, selling pressure persists, with CryptoQuant founder Ki Young Ju attributing it to older Bitcoin whales. These large holders are reportedly offloading through high-volume OTC trades and exchange deposits. However, Ju noted that these actions are unlikely to cause a major market crash.

Interest from institutional investors, particularly in the U.S., appears to be waning, as reflected by the Coinbase Premium hitting a two-year low. Ju emphasized that a recovery in this metric would be crucial for Bitcoin’s next upward move.

Meanwhile, the broader market is seeing growth across top altcoins,while XRP has even overtaken Tether as the third-largest cryptocurrency, signaling shifting market dynamics. Analysts suggest Bitcoin dominance could decrease in the coming weeks, as altcoins gain momentum.

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As uncertainty looms over geopolitical events and their potential impact on crypto policy, the coming weeks will determine whether the market continues its bullish trend or faces new challenges.

Alexander Zdravkov