Bitcoin (CRYPTO: BTC) has been facing selling pressure in recent months while other cryptocurrencies have remained strong. It also appears that crypto assets are declining with the overall markets this week. So what exactly is happening in the cryptocurrency market?
“The tension we see across the public markets is also felt in cryptocurrencies and we have seen some self-fulfilling narratives in the crypto space.” Meltem demirors He said Wednesday on CNBC’s “Fast Money.”
Bitcoin courses: The self-fulfilling narrative you’re referring to is a belief in Bitcoin cycles, which are seen as related to Bitcoin halving or halving. Bitcoin halving is predetermined based on Bitcoin programming, but it occurs approximately every four years. During each halving, the reward that bitcoin miners can earn for validating transactions is halved.
“Bitcoin halved 18 months ago,” Demirors said. “We are now at a really critical time in that narrative cycle.”
Alternate season? She told CNBC that part of the selling pressure in Bitcoin may be the result of trading in other crypto assets. Demirors said they have seen significant influxes to Solana (CRYPTO: SOL), Avalanche (CRYPTO: AVAX) and Tera (CRYPTO: LUNA), as well as continued interest in Ethereum (CRYPTO: ETH).
SEE ALSO: Was Solana Really Downed Again by DDoS Attackers This Week?
Demirors noted that Bitcoin is up nearly 100% in 2021, while Ethereum is up nearly 300%.
“It’s been a great year for both of those things,” she said. “People are now taking their profits and transferring them to other assets that may see more physical appreciation in 2022.”
Demirors refer to something many call an “alternate season,” or an alternate season. This refers to the time when traders and investors trade off bitcoin into other crypto assets sometimes called “altcoins”.
“I think this is a behavior that we have seen over and over when it comes to crypto assets,” Demirors said.
BTC price movement: At press time on Thursday morning, Bitcoin is down 8.01% at $43,928.83 over a 24-hour period.
Photo: SergDE from Pixabay