Further falls expected after Bitcoin and altcoins fail to join wider market rally

Bitcoin and other cryptocurrencies have not joined in the wider financial market rally, with many of the larger altcoins losing ground.

The number-one crypto fell 2.2% over the past 24 hours to US$28,999.56, though it recovered from a week’s low of just over US$28K at one point in the session.

Ethereum, the second largest coin by market cap, fared worse, falling 6.9% to US$1,787.52.

Altcoins, including Cardano, Solana, Polkadot and Avalanche, were down between 7% and 9%.

“In the crypto world, bulls are nowhere to be seen,” said market analyst Naeem Aslam at AvaTrade.

“The fact that Bitcoin price is struggling to stay above the US$30K price level indicates that the path of least resistance is skewed to the downside.”

Calling the altcoin falls “a severe sell-off”, he added: “If the BTC price continues to fall, altcoins will likely fall even further. Overall, it seems that the last night of the crypto winter is still far away.”

And with the European Central Bank warning that the cryptocurrencies are a big threat to financial stability, analyst Ipek Ozkardeskaya at SwissQuote agreed.

“There is a stronger case for a further drawback in Bitcoin’s price in the coming weeks, than a rebound,” she said.