- Bitcoin hits new highs, while altcoins still need 30% growth to match their 2021 all-time peak.
- Following Bitcoin’s record high, its price quickly dropped below $110K, signaling market volatility.
- Proposed tariffs and trade tensions impact Bitcoin’s price, highlighting crypto’s sensitivity to global events.
Bitcoin prices are at an all-time high, yet most altcoins are seeing slower growth. Despite recent increases in Bitcoin’s value, altcoins still have to rise by about 30% to reach their all-time high from 2021. Altcoins have to break through important barriers for their price to rise. Still, the ongoing strength of Bitcoin has kept it leading the market for much of this cycle.
Source: X
BTC price was rapidly reduced following its high point of $111,970 on May 22. The price of the cryptocurrency slipped to below $110,000, just touching $108,000. The quick decline has become a concern for investors, since it points to increased fluctuations in BTC value. Even though the price has gone down, BTC holds a strong place in the crypto market, while altcoins have not yet reached its growth level.
Source: TradingView
Bitcoin Responds to Trade Uncertainty
The price fall followed a post by President Trump on TruthSocial. Trump talked about introducing a 50% tax on European Union goods which raised worries about a global trade war. These kinds of proposals may cause great uncertainty for traders in the markets. Due to this uncertainty, the price of BTC has recently been affected. When similar tariffs were imposed on China earlier this year, BTC slid below $76,000, showing that trade problems can affect the cryptocurrency market.
Source: Truth Social
The unpredictability in global markets has demonstrated that BTC responds to changes in them. The price of Bitcoin often fluctuates a great deal when there are changes in the traditional markets. The recent drop shows that any news in geopolitics can impact the crypto sector. Now, the price of BTC responds more to what is happening in the world economy, especially to issues like trade deals or new tariffs.
Altcoins Face Key Barriers
While altcoins have regained some losses, they are still not as strong as BTC is right now. They are still far below their highest point which was recorded in 2021. To grow and become stronger, altcoins must first overcome essential barriers and encourage additional investment. Still, BTC generally dominates, as its up-trend has been stronger and longer than most of the alternatives.
The link between traditional markets and crypto has become more obvious than ever. Disputes about trade affect the prices of BTC as well as other altcoins. Because of this volatility, there are many risks and chances in the crypto market. With Bitcoin getting stronger, other cryptocurrencies struggle to match it and need to overcome important technical hurdles to thrive.
Read More: Bitcoin Hits $111K, But Investors Are Turning to Altcoins: What’s Behind the Shift?