Bitcoin is rising, so why did Worldcoin plunge... When will the rebound signal appear?

▲ Worldcoin (WLD) ©

Behind Worldcoin's more than 10% decline, despite Bitcoin's rise, is a cooling trend of funds flowing out of altcoins in general, rather than individual negative factors.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 17 (local time), Worldcoin (WLD) fell 10.21% over 24 hours to $0.286, showing a clear weakness compared to rising Bitcoin and the overall cryptocurrency market. During the same period, Bitcoin rose 2.85%, and the primary cause of Worldcoin's decline was identified as a general outflow of funds from altcoins.

The key background is the deepening concentration on Bitcoin. CoinMarketCap's Altcoin Season Index fell 10.53% over 24 hours to 34, and Bitcoin dominance rose to 59.24%. The interpretation is that as the market shifted from altcoins, which are characterized as high-risk assets, to Bitcoin, which is perceived as a relatively safe asset, high-beta assets like Worldcoin experienced larger declines.

CoinMarketCap stated that no distinct additional negative factors specific to Worldcoin were clearly identified regarding this decline. As there were no individual factors such as separate project issues, on-chain events, sudden changes in open interest, or large-scale liquidations, this movement is explained as a reflection of the overall market's risk-averse sentiment rather than a specific asset issue.

The short-term watch points are Bitcoin's price and whether altcoin investor sentiment recovers. CoinMarketCap believes that if Bitcoin maintains the $75,000 to $77,000 range, Worldcoin could stabilize around $0.28. Conversely, if it falls below the recent low of $0.26, additional downward pressure could increase.

Ultimately, the media's judgment is that Worldcoin's rebound depends on a change in market cyclical structure rather than individual positive news. For risk appetite to revive across altcoins, the Altcoin Season Index needs to surpass 40 again and further recover to above 50. Until then, there is a strong possibility that Worldcoin will continue to show a relatively weak trend even during Bitcoin's bullish phase.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*