Will Bitcoin overtake altcoins as 2020 pattern repeats itself?

Market analysts suggested that Bitcoin may outpace altcoins as the BTC/ALT ratio reached historical levels.
Bitcoin also reached a new all-time high as exchange reserves continued to decline.

As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I can confidently say that the recent developments surrounding Bitcoin [BTC] have piqued my interest. The BTC/ALT ratio reaching historical levels and Bitcoin’s all-time high price are signs that the bull run might be far from over.

For the past month, Bitcoin (BTC) has been at the center of trading action, captivating both individual and professional investors. The resulting fascination has led to a substantial 34.16% increase in its value over this period.

Over the last day, Bitcoin (BTC) saw a rise of 1.06% and reached a new high of $94,002.87, as reported in the latest update.

According to AMBCrypto’s assessment, it seems that upcoming market patterns and figures suggest Bitcoin might soon experience a notable increase.

Analyst predicts potential upside for BTC

Known cryptocurrency expert Benjamin Cowen has pointed out an important juncture for Bitcoin, indicating a possible upcoming surge of substantial proportions.

As a researcher, I’ve noticed that, following Cowen’s analysis, the value of the ALT/BTC pair has recently returned to levels last seen on November 24, 2020 – a day preceding a significant shift in liquidity from altcoins towards Bitcoin.

In the year 2020, a significant difference in available funds (liquidity) caused Bitcoin prices to reach unprecedented peaks during a span of about five weeks. Meanwhile, most other cryptocurrencies (altcoins) experienced little or no growth.

Cowen notes the parallels, stating,

Today, the value of ALT/BTC pairs is equivalent to what it was in November 2020, just prior to when the decline in these pairs started.

If the pattern continues, Bitcoin might experience an extraordinary increase, reaching unprecedented highs while other cryptocurrencies are expected to play a lesser role during the predicted transition period.

Stablecoin minting could signal inflows to BTC

Lately, there’s been a substantial increase in the creation of stablecoins, as evidenced by the current market value of USD Tether (USDT) standing at approximately $128.90 billion. Such a surge is generally interpreted as a positive sign for the overall crypto market.

Notably, over a billion units of Tether (USDT) were recently produced on the Ethereum blockchain network.

On a grand scale, this process often signals increasing interest and is commonly employed by market players to purchase other digital currencies.

Based on the current ALT/BTC trend, there’s a strong possibility that a large amount of freshly issued USDT could find its way into Bitcoin should past events serve as a guide.

Falling exchange reserves point to market shift

According to data from CryptoQuant, there’s been a significant reduction in the amount of Bitcoin stored on exchanges. Daily and weekly statistics show a drop of about 0.34% and 0.77%, respectively.

Currently, the amount of Bitcoin held in exchanges is at a record low since 2019, sitting at approximately 2,572,477.995 Bitcoins.

Read Bitcoin’s [BTC] Price Prediction 2024–2025

As a crypto investor, I find it encouraging when there’s a persistent decrease in Bitcoin available on exchanges. This trend indicates that market players might be choosing to keep their Bitcoins securely stored in personal wallets instead of liquidating them. In essence, this could be seen as a bullish signal because it implies strong confidence and optimism about the future value of Bitcoin.

This shift reflects growing confidence in Bitcoin’s long-term value.

2024-11-20 23:36

Analyst predicts potential upside for BTC

Stablecoin minting could signal inflows to BTC

Falling exchange reserves point to market shift

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