The recent shake-up in the cryptocurrency market largely affected altcoins. Of the $1 billion in forced closures, Bitcoin accounted for less than half, and its market share increased by 1% to 57% over the week.

Year to date, Bitcoin is still trading up 34%. In terms of returns, it's significantly ahead of the American stock market, where the S&P 500 — the index of the largest companies — is only up 10.2%.

On the other hand, most altcoins in the Top 50 have lost almost all of their 2024 gains. Analysts from CryptoQuant published a ranking of altcoins with the biggest losses:

Projects listed in 2024 were hit even harder. Out of 30 coins that launched on Binance, only JUP from the Solana-based Jupiter decentralised exchange is up. The coin's value rose by 21%, while the total value of staked assets on the platform has increased to $600 million in six months.

Other race participants mostly saw their value fall by over 60%.

It's natural to see a sell-off of altcoins and an increase in Bitcoin's market share during periods of uncertainty with a risk that the US economy could fall into recession. Read more about the reasons why financial markets fall in our previous article). However, this time, such a reaction seems excessive since the Fed is still in control of things and will begin to reverse its monetary policy and 'save the economy' in September.

US Federal Reserve key interest rate.

It seems that investors in Ethereum ETFs share this opinion. They've bought the dip for two days in a row, taking advantage of the considerable discount on Ethereum. On Monday and Tuesday, the total net inflow amounted to $147 million (the best result since the ETFs launched), while Bitcoin ETFs are still in negative territory.

Leading regulators' monetary easing this fall will pump liquidity into markets, which could trigger a favourable season for altcoins.

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)

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