the bullish momentum seen over the course of the week extended to the weekend as the majority of the top 100 tokens listed on Coin Market Cap are posting double-digit gains.
The entry of Bitcoin (BTC) into a short consolidation period and the possibility of a third round of stimulus checks for US citizens are two possible causes of the bullish price movement on Sunday.
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While there are concerns about recent large Bitcoin inflows to South Korean exchanges by Bitcoin whales, fundamental factors such as miners' trends and diminishing supply are making investors optimistic. Relatively speaking on Bitcoin's future price prospects.
A growing number of experts have expressed the view that the recent bullish rally of Bitcoin is due to the outflow of gold as the higher digital currency has rapidly turned into the preferred hedge against inflation for a generation Millennium.
In a special comment to Coin Telegraph, Chad Stinglas, Head of Trading at Cross Tower, said: I think we're entering a phase in the markets where daily volatility of $ 1,000 will be normal to Significant limit ... The market maker's liquidity relative to the size of the big players is getting smaller and smaller. With market makers becoming less able to store trade flow risks, I expect prices to move very quickly.
Has the new altcoin season started?
As was the case in previous bull markets, Bitcoin's price rally is often followed by a plateau. During this time, traders tend to turn their attention towards alternative currencies and convert Bitcoin profits into digital currencies with a smaller market value.
according to Jean-Baptiste Pavago, partner at EXO Alpha, the current bullish momentum seen from Bitcoin will eventually slow, and at this point investors are likely to build up in Alternative currencies.
"We have already started noticing the classic wealth distribution pattern over the past two weeks, as Bitcoin investors are looking to reap their profits and invest in other premium currencies," Bafago said. While the upside in Bitcoin is diminishing, the altcoin market is becoming more attractive to traders and investors looking for great returns. We expect to see Bitcoin's dominance begin to decline as the altcoin market booms over the next few weeks.
