Bitcoin prices last week and the week before surprised everyone as it crossed all its records. The cryptocurrency saw a huge surge after traders and institutional investors shifted to crypto-trading following the dicey future of the US Dollar. The coronavirus pandemic had hit the market hard and more and more investors started investing in Bitcoins as a backup currency.
The rally in Bitcoin price has now come to a halt and investors are wondering why. Not only that, many have noticed a recent shift to altcoins as the price of Bitcoins begin to consolidate. Several analysts are investigating the two-fold question: is the season of Bitcoins over? And does this mean the dawn of the season of altcoins?
Not only altcoins, but the value of other cryptocurrencies is also on the rise. ETH (Ethereum) continues on its slow-but-steady race. ETH value reaches new highs per annum. Along with that, Bitcoin Cash value has also increased by 23.6% over the last year.
Stimulus Check 3 Possibly Bringing Down Bitcoin Price
Expert analysts comment on the consolidation of Bitcoin price saying that this is what happens to bull markets. The extraordinary sky-rise will have to come down to the ground post the bull period. This seems to come true as Bitcoin traders are rapidly making their shift to altcoins even though some of the investors are of the opinion that the consolidation period is temporary.
Jean Baptiste Pavageau explains that what is happening to Bitcoin price and the shift to altcoins is a classic example of the “wealth distribution pattern”. He further elaborates saying that whatever investors have been able to earn from the trading of Bitcoins, they are trying to invest in other cryptocurrencies to keep their investment risk-free and diverse.
Others point out that the possibility of the third stimulus check might also be the reason for Bitcoin trading sideways.