Bitcoin, the original cryptocurrency, continues to showcase why it’s the first and most dominant digital asset within the entire Web3 franchise.

As the market’s mainstay cryptocurrency, it exerts great influence over alternative cryptocurrencies (altcoins). Unfortunately, because of this, many investors have developed a unique strategy we once delved into in a previous article: bitcoin price spoofing.

This is our hurdle, as it has once again prevented Bitcoin from increasing its $100,000 mark, only to fall short at $99,605 on November 23.

Without any delay, let’s dive into the world of cryptocurrency, focusing on the relations between Bitcoin price spoofing and altcoin performance and how you, the trader, can potentially utilize this chance.

Navigating Bitcoin Price Spoofing and Its Impact on Altcoins

Bitcoin’s price surged past previous critics and competition to demonstrate why it remains the original crypto asset. After being shunned at first, this once-rejected concept neared $100k last November 23 before coming up short at $99,605.

At the time of writing, BTC is trading at $96,116; it appears close to this crucial threshold; analysts such as Pav Hundal from Swyftx believe a decisive “exuberant move” beyond this milestone is necessary to trigger wider market shifts.

Bitcoin Price Spoofing adds complexity to these movements; large traders may place and cancel orders to manipulate prices through this tactic, potentially increasing Bitcoin’s market dominance to nearly 65%-70% as soon as 2020 arrives.

Also, Read: The Hidden Forces Behind Bitcoin Price Movements: Spoofing and Its Impact on Africa.

Altcoin Market Volatility

Altcoins remain volatile and heavily dependent on Bitcoin’s performance. Solana (SOL), for instance, witnessed a 12.98% surge in one day, only to quickly reverse most of those gains shortly thereafter.

Unfortunately, this trend tends to take advantage of Bitcoin’s rising nature only for investors seeking quick profits to siphon their funding. Due to this factor, the impact of Bitcoin on altcoin prices is extraordinary, allowing altcoin performance to skyrocket.

Volatility remains high due to Bitcoin’s resistance at $100K and price spoofing practices; until Bitcoin breaks through to achieve an obvious breakout, altcoins could experience sudden gains followed by sharp pullbacks.

Short-term rallies may tempt investors with promises of 20%-40% gains on altcoins; however, such surges typically lack longevity and predictability. It is, therefore, imperative that investors understand both how Bitcoin impacts altcoin prices and any associated risks from speculation trading.

Temporary Gains, Inevitable Retracements

The go-to strategy for seeking to benefit from altcoin performance often comprises short rapid rallies with the potential to 400x an altcoin price. Unfortunately, its downside is that investors are required to have prior knowledge and must be kept aware of the market at all times.

Recent price movements of Solana and Pepe show just how fleeting gains may be; investors must approach with caution if looking for long-term gains in these coins.

Bitcoin dominance measures its share of total cryptocurrency market capitalization. When dominance increases, this typically signals that investors have turned more favourably towards Bitcoin at the expense of altcoins.

Experts and analysts have speculated that Bitcoin will experience a similar fate. As per analysis, Bitcoin will most likely reach between 65%-70% dominance before seeing any change.

This trend reflects institutional investors’ increasing preference for Bitcoin over altcoins due to concerns of price spoofing as well as the relative security of leading cryptocurrencies.

To allow altcoins to thrive, however, a shift of capital may occur if Bitcoin breaks through $100K in terms of BTC ownership, an event which might happen if its resistance at $100K breaks away from BTC ownership altogether.

Institutional Influence on Market Trends

Institutional investors have shown more affinity toward Bitcoin recently as an increasingly secure bet in an otherwise turbulent market, in contrast to past cycles when altcoins gained significant traction during bullish phases.

A core reason for this dynamic shift was the recent FedCuts and US elections. As a result, one of the world’s superpowers has shifted its focus to adopting digital assets. Unfortunately, this presents a once-in-a-lifetime opportunity, forcing many to fear the spoofing of Bitcoin prices by institutions.

Altcoins may experience difficulty recovering their momentum without an infusion of capital into exchanges; this would pose serious difficulties to traders, blockchain developers, and African entrepreneurs who rely on robust market conditions as sources for innovation and adoption funding.

Opportunities for African Investors and Developers

Navigating the crypto market’s ups and downs requires smart decision-making to avoid pitfalls like Bitcoin price spoofing. By diversifying portfolios and setting realistic expectations, investors can reduce risks associated with altcoin investments.

Developers, however, should focus on long-term innovation instead of short-term speculation. Initiatives supporting blockchain education, such as Web3Africa.news’ efforts, are essential in building stronger communities. Their support also aligns with Africa’s overall mission of harnessing this technology for economic expansion and social advancement.

Conclusion

Bitcoin’s move towards six figures marks an essential turning point in its market and for African stakeholders; remaining informed of developments is imperative to making sound investment decisions and supporting an innovative blockchain ecosystem.

Web3Africa.news can play an instrumental role in this endeavor by providing educational resources and market analyses tailored to equipping African communities. Africa could soon lead the global crypto revolution by adopting blockchain technology wisely and adapting market dynamics prudently.

African investors and developers can seize opportunities while managing risks by understanding the complex relationship between Bitcoin dominance, altcoin performance, institutional influences, and active engagement leveraging blockchain for a brighter future. Stay engaged, stay informed, and leverage it effectively for success!