Monday saw significant fluctuations in the cryptocurrency market, with altcoins falling by over 10%. Analysts are uncertain of a specific cause for this market dip, although a recent decline in spot Bitcoin ETF transactions may be contributing. Market casualties include Shiba Inu and Avalanche which have taken the brunt of the fall at 12.7% and 10.6% respectively, according to CoinGecko data.
Other noteworthy decrease were experienced by Uniswap (UNI) and Dogecoin, both suffering a double-digit drop. Solana had capitulated 9.4%. The only asset not showing a decrease was Ripple’s XRP, but even so, the increase was a mere 0.1%. In the past 24 hours, Bitcoin and Ether have depreciated by 1.3% and 4.4% respectively.
Apollo Crypto’s Chief Investment Officer Henrik Anderrson commented on the market dip, stating that while he struggled to determine the exact cause, the fall in spot Bitcoin ETF flows could be a significant factor. He hypothesised that the weak Bitcoin ETF flows resulted in instability among altcoins, which triggered sudden liquidations amongst continuously bullish traders in Bitcoin, Ethereum, and Dogecoin.
Simultaneously, although Bitcoin has struggled due to weak inflation data, Bitcoin mining stocks have been performing strongly in recent weeks. Mitchell Askew, head analyst at Blockware Solutions pointed out that fears about post-halving profitability undermined these stocks prior to the halving. Now, stocks are rebounding after underperforming relative to Bitcoin and its proxies. The Valkyrie Bitcoin Miners ETF, WGMI, is now up approximately 54% since the halving, indicating a restoration of market confidence in the mining sector.