Bitcoin and the aggregated crypto markets have been caught in the throes of volatility as of late, and although this volatility has mostly proven to be bullish for Bitcoin, it has largely been devastating for altcoins like Ethereum.
Now, one analyst is noting that Ethereum’s decline against Bitcoin may signal that further weakness is imminent in the altcoin markets, meaning that embattled investors may face even further losses in the near-future.
Ethereum Faces Continuous Decline Against Bitcoin as BTC Dominates Markets
Through the course of Bitcoin’s recent bull run, it has incurred a significant increase in dominance over the aggregated crypto markets, which has come about as a result of investors fleeing major altcoins in favor of BTC.
Ethereum has been one such major altcoin that has lost its dominance and has faced a steep sell off, with its price against Bitcoin plummeting from its year-to-date highs of 0.041 BTC to its current price of 0.01863 BTC.
Ethereum’s year-to-date price action
David Martin, a popular crypto analyst on Twitter, spoke about ETH underperforming BTC in a recent tweet, explaining that it is emblematic of Bitcoin’s current strength and Ethereum’s present weakness.
“#ETHEREUM continues to underperform #bitcoin, and the standard deviation of the residual spread between the pair of assets continues to widen, indicating further drift between bitcoin’s strength and ethereum’s weakness in price as of late,” he explained.
Altcoins Plummet Throughout July Despite BTC’s Stability
The weakness of altcoins against Bitcoin can be seen clearly when looking towards their July price action, as the month was a volatile one for BTC.
Although BTC only dropped a mere 6.8% in July, many altcoins dropped an average of 20%, with some plummeting more than 33%.
“For the month of July, #bitcoin was down 6.8% while the top #Altcoins were down around 20%. Most alts had > 33% drawdown in July,” Martin further explained in a later tweet.
Although it currently remains unclear as to whether or not Bitcoin will be able to continue climbing higher in the near-future, it is critical that it begins surrendering some of its market dominance, or else altcoins like Ethereum could face even further selling pressure in the coming days, weeks, and months.
Featured image from Shutterstock.
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