The cryptocurrency market has continued to ride on its positive momentum this week. In recent developments, Bitcoin (BTC) has managed to regain the $17,500 mark almost after a month. The lengthy green candle of the leading crypto token is a ray of hope for the market. However, investors are still skeptical of a fake-out from the coin.
Bitcoin (BTC) started this month at around $16,500. However, it has managed to gain around $1,000 in less than two weeks. Investors and traders have maintained a cautious approach towards the market. Moreover, the token is now at par with the peak of December last year. However, analysts have their eyes on the upcoming macroeconomic data report from the US on January 12.
Consumers expect that the report will indicate a decrease in inflation. Thus, it might pave the way for an extended bull run in cryptocurrencies. On the other hand, experts are still warning traders to avoid FOMO. They believe the market has yet to have solid fundamental price support to support the bullish narrative.
Are Altcoins Following the Trend of Bitcoin (BTC)?
Bitcoin (BTC) spent a brief time over $17,500. It is currently trading at around $17,440. However, the market cap of the coin went past $335 billion. Furthermore, Bitcoin (BTC) has a dominance of 39.2% over the altcoins. On the other hand, the altcoin market has shown mixed sentiments.
Ethereum (ETH) has outperformed BTC, as it crossed $1,330. The leading altcoin is up by around 18% since its lowest point in December. However, the trading volume of Ethereum (ETH) and the rest of the altcoins is growing considerably. As per analysts, it is a concerning development for the market because the market tends to go down when the altcoin volume increases unexpectedly.
Despite this argument, many coins have continued to perform well in the market. Ripple (XRP), Aave (AAVE), Mina (MINA), and Polygon (MATIC) have all shown promising results over the last day or two. However, the next couple of days is extremely critical for the crypto industry. If bulls manage to sustain their momentum, the crypto space can build on its positive start to the new year. The next two days will also clear the air for many uncertain investors and traders in the market.