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Altcoins hit new highs after bulls kick Bitcoin price back above $50K

  • Posted On - 2021-04-27 09:25:44

A quick short squeeze catapulted BTC worth to a higher  $54,000 and a handful of altcoins rallied to new all-time highs.

Cryptocurrency investors breathed a sigh of relief on twenty six April as the sharp reversal in the price of Bitcoin (BTC) was accompanied by a market-major recovery that has a majority of altcoins seeing green. It's likely that the breakout was assisted by bullish assessments from JPMorgan American Investor Analysts and PayPal's announcement that requests for purchasing cryptocurrencies had surpassed expectations. 

Last week’s market pullback did very little to slow the mainstream adoption of crypto as stories like NFL draft prospect Trevor Lawrence signing an endorsement deal with crypto portfolio-tracking platform Blockfolio and hotels in Nigeria declaring plans to accept BTC as payment emerge on a day to day basis.

On-chain analysis tracks Bitcoin's growing bullish momentum

Data from Glassnode indicate that on-chain transaction fees and  the average transfer volumes for the BTC network hit new ATH in the last week as the network continues to recover from mempool congestion because of the drop in hashrate that happened as the result of a power outage in China.

Mean transaction fees on the Bitcoin network. Source: Glassnode

Analysis of the Spent Output age bands, which detail how long Bitcoin has been sitting in a wallet, indicates that newer token holders were shaken out by the recent dip while wallets that have been holding longer than 1 month saw a decline in transaction activity.

The data also shows that wallets that have been holding for longer than six months have not seen a notable increase in spending since the market pullback in February.

Overall, analysis shows that it had been the newer hands within the market that were shaken out by last week's correction, while the more experienced crypto traders were happy to accumulate BTC from those worried about a further price drop.

Altcoins rise as Bitcoin finds its footing

Bitcoin’s struggles over the last week have allowed altcoins to step forward and gain market share with a number of coins breaking out to new ATH and trading volume on decentralized exchanges on the uptrend.

The based on ETH DeFi lending platform Compound (COMP) hiked seventeen percent overnight to achieve a new record high at $671 while the layer-2 solution Polygon (MATIC) reached at 68% to a new all-time high at $0.576.

Daily cryptocurrency market performance. Source: Coin360

The Decentralized exchange Serum (SRM) which is based on Solana saw its native token price break out to a new high at $11.47 thanks to increased activity on the Solana (SOL) blockchain network.

SOL price increased over 120% in the last week and reached a new high of $48.46 on 25 April as its ecosystem continues to expand and new projects launch on this layer-1 Ethereum competitor.

The overall cryptocurrency market cap now stands at $2.04 trillion and Bitcoin’s dominance rate is 50.3%.