Altcoin Volatility Hinges on Bitcoin’s $100K Breakout, Says Analyst

Altcoin Volatility Linked to Bitcoin's $100K Threshold

According to Pav Hundal, lead analyst at Swyftx, the cryptocurrency exchange, altcoins will continue to experience significant price swings until Bitcoin establishes a firm foothold above the $100,000 mark.

Speaking at Aus Crypto Con 2024, Hundal emphasized that Bitcoin's trajectory remains crucial for sustained altcoin growth. He noted, "We anticipate a significant Bitcoin rally, which will trigger a shift in capital towards altcoins."

While some altcoins like memecoins have had brief periods of outperformance, Hundal predicts most will remain volatile until Bitcoin achieves a six-figure milestone.

Bitcoin briefly approached the $100,000 mark on November 23, reaching $99,605, but has since retreated. Currently trading at $96,476, Bitcoin's fluctuations have kept altcoins in a state of flux.

Short-Lived Gains and Retracements

Hundal cited examples of recent altcoin volatility. Solana surged 12.98% in 24 hours on November 21, only to give back almost all its gains (13%) within five days. Similarly, Pepe soared 93.15% following its listing announcements on Coinbase and Robinhood on November 15, but retraced 22% of its gains the following day.

Hundal explained, "Altcoins may see gains of 20%, 30%, or even 40%, but they often quickly reverse most of those movements."

Asked if memecoins like Pepe could replicate the 800% gains seen with Dogecoin in previous cycles, Hundal acknowledged the possibility but emphasized the need for capital inflows. He noted, "Such gains become more likely when Bitcoin dominance declines."

Bitcoin Dominance Sets the Scenario

Hundal highlighted Bitcoin dominance as a key metric for predicting altcoin performance. Currently at 58.30%, according to TradingView, Bitcoin dominance measures Bitcoin's market capitalization as a percentage of the total crypto market.

Hundal believes dominance could reach 65-67% or even 70% before reversing. He stated, "My focus is not on predicting the exact peak of Bitcoin dominance but on identifying when conditions favor the altcoin market."

With Bitcoin's price movements and dominance shaping the broader crypto market, market participants are closely monitoring its next move to gauge whether altcoins can break free from their current volatility. In the meantime, altcoin traders may encounter significant turbulence.

The original post, "Altcoin Volatility Hinges on Bitcoin's $100K Breakout, Says Analyst," was first published on TheCoinrise.com.