Altcoin prices appear to be dropping after Bitcoin reached past $49,000 yesterday. Indeed, out of roughly 96 DeFi assets listed on Messari, only 10 showed positive movement over the last 24 hours. Why is this?
According to a report from CoinTelegraph, the Bitcoin rally that took place over the weekend may be partially responsible. When Bitcoin hit past $49,000, the rally may have been partially pushed by investors who pulled out of altcoin markets in favor of BTC; notably, the price of ETH also fell as Bitcoin pushed forward.
Money is flowing out of alts….
I think it’s about to go in to bitcoin. pic.twitter.com/ELQbx25lSU
— Altcoin Psycho (@AltcoinPsycho) February 14, 2021
And indeed, even though altcoin markets may have taken a beating over the weekend, prices already appeared to be on the road to recovery. Over the last 24 hours, the total altcoin market cap fell as low as $525 billion, which is down from $595 billion. At press time, the total altcoin market cap had risen to $565 billion.