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Bitcoin Stalls at $35K as Gains Flow to Altcoins in Crypto's 'Early Bull Market Rotation,' Analyst Says

Layer 1 cryptocurrencies and DeFi tokens soared this week as bitcoin and ether chopped sideways.

작성자 Krisztian Sandor|편집자 Stephen Alpher
업데이트됨 2023년 11월 3일 오후 6:41 게시됨 2023년 11월 3일 오후 6:41 AI 번역
Bitcoin price on Nov. 3 (CoinDesk)
Bitcoin price on Nov. 3 (CoinDesk)

Bitcoin [BTC] tried and failed at holding above $35,000 this week, with one analyst arguing traders likely took their BTC profits and rotated into altcoins, pushing those prices higher.

BTC price spent most of the week stuck between $34,000 and $35,000, with every attempt to break to the upside so far – even hitting a fresh yearly high almost touching $36,000 early Thursday – meeting with heavy selling pressure, pushing down the price.

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Bitcoin was changing hands at around $34,400 after weak U.S. jobs report, slightly up just under 2% for the week, with ether [ETH] up a similar amount.

Read more: What Happens to Bitcoin Price if Spot ETF Isn’t Approved?

Meanwhile, large-cap tokens of layer 1 networks (L1) such as Avalanche [AVAX], Cardano [ADA] and Polkadot [DOT] jumped 10%-15% over the same time frame and Solana [SOL] hit a 14-month high Wednesday and Friday afternoon remained higher by 25% over the previous seven days.

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Decentralized finance (DeFi) tokens posted the biggest weekly advance among the CoinDesk Market Index sectors. The CoinDesk DeFi Index [DCF]jumped almost 10% in a week, driven by double-digit rallies by tokens of decentralized exchange UniSwap [UNI], SushiSwap [SUSHI], as well as lending platform Aave's native token [AAVE].

Weekly performance of the CoinDesk Market Index sectors (CoinDesk)
Weekly performance of the CoinDesk Market Index sectors (CoinDesk)

Bankrupt crypto lender Voyager Digital's native token [VGX] also popped 20% Friday as some 30% of the token's supply was sent to a burn address, potentially to destroy.

The CoinDesk Market Index [CMI], a basket of more than hundred cryptocurrencies weighted by market cap, outperformed the two blue chip cryptocurrencies with its 3.2% gain, underscoring the leadership of alternative cryptocurrencies (altcoins).

Lucas Outumuro, research head of IntoTheBlock, said the outperformance of smaller, riskier tokens is a sign of capital rotation from bitcoin and ether after their sizable rallies, a typical behavior from investors during crypto bull markets.

"Historically crypto cycles have followed the trend where BTC leads the first surge, then ETH, with capital progressively being allocated to lower cap and riskier bets," Outumuro said. "This week's trend suggests this rotation is beginning to take place as BTC and ETH trend sideways while DeFi and alternative layer 1 tokens record a strong rebound."

"Despite the rotation into riskier assets, the demand flowing into crypto appears to be relatively organic, led by spot buying," Outumuro noted. "Even though the price momentum may be getting overheated short-term, there are signs of sustainable demand driving the crypto uptrend."

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Exchange Review - March 2025

Exchange Review March 2025

CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.

What to know:

Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.

  • Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
  • Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions. 
  • Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.

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