Bitcoin Only Holds Up…Why Are Altcoins Weak?

▲ Bitcoin, cryptocurrency ©

While Bitcoin (BTC) held firm above the $78,000 mark, altcoins faltered, causing the market to enter a period of consolidation.

According to investment media FXStreet on April 23 (local time), the total cryptocurrency market capitalization decreased by 0.8% over 24 hours, totaling $2.6 trillion. This decline was driven by altcoin weakness, while Bitcoin, on the other hand, showed a trend of supporting the market, creating an unusual structure.

Bitcoin rose by 0.4% during the same period, showing relative strength, while Hedera and Aptos remained flat. In contrast, Dash fell by 5%, Theta by 4.9%, and Basic Attention Token by 4.8%, indicating increased correction pressure. The overall market appears to have entered a short-term pullback phase within an upward trend.

Investor sentiment is recovering rapidly. The Fear & Greed Index rose to 46, reaching its highest level in three months. Bitcoin surpassed $79,000 during intraday trading, reconfirming the perception of weak resistance in the $75,000-$86,000 range, but it retreated back to the $78,000 level in conjunction with adjustments in traditional financial markets.

Market instability factors still persist. The Volo liquid staking protocol based on Sui suffered $3.5 million in damages due to a hack, and the total DeFi losses for April were evaluated as the worst level. Specifically, approximately $600 million in losses occurred, including Drift and Kelp Protocol, and after the Kelp hack, $15.1 billion in funds flowed out of Aave, highlighting DeFi system risks.

Regulatory and policy variables also affect the market. Tron founder Justin Sun filed a lawsuit against World Liberty Financial, and New York State filed a lawsuit against Coinbase and Gemini regarding prediction market contracts. At the same time, Fed Chairman nominee Kevin Warsh expressed a favorable stance in a Senate hearing, stating that cryptocurrencies are already a core part of the U.S. financial system.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*