Only Bitcoin Holds Up…What's the Reason for Altcoin Weakness?

▲ Bitcoin, Cryptocurrency ©

While Bitcoin (BTC) held steady, maintaining the $78,000 level, altcoins faltered, causing the market to take a breather.

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

Bitcoin showed relative strength, rising 0.4% during the same period, while Hedera and Aptos remained flat. In contrast, Dash fell 5%, Theta 4.9%, and Basic Attention Token 4.8%, expanding 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 broke above $79,000 during the trading session, reaffirming the perception of weak resistance in the $75,000-$86,000 range, but it was pushed back to the $78,000 level in conjunction with adjustments in traditional financial markets.

Market instability factors still exist. The Sui-based Volo liquid staking protocol suffered $3.5 million in losses due to a hack, and the total DeFi losses for April were assessed as the worst on record. 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 are also affecting the market. Tron founder Justin Sun filed a lawsuit against World Liberty Financial, and New York State filed lawsuits against Coinbase and Gemini regarding prediction market contracts. At the same time, Federal Reserve Chairman nominee Kevin Warsh expressed a favorable stance at 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 investment losses based on it. The content should be interpreted for informational purposes only.*