Bitcoin’s Q3 2024 Resilience Highlights Altcoin Volatility

• Bitcoin shows resilience in Q3 2024, outperforming volatile large-cap altcoins.
• Ethereum’s price decline aligns with July’s spot ETFs launch, reflecting investor sentiment shifts.
• Altcoins like Solana and Dogecoin spiked earlier in 2024 but trended lower by mid-year.

Bitcoin has gained traction in Q3 2024, with large-cap altcoins lagging the same period.

Data from blockchain data firm Kaiko reveals that altcoins including Ethereum, Dogecoin, Solana, Toncoin, and XRP experienced a market downturn. Kaiko’s asset prices chart shows a clear shift in market dynamics, with Bitcoin solidifying its dominance as altcoins display increased volatility. Notably, ETH has declined since its spot ETFs were introduced in July.

Major large cap altcoins are trailing $BTC so far this quarter as its’ dominance increases. $ETH has trended lower since the launch of spot ETFs in July. pic.twitter.com/EvkLCc7cZL

— Kaiko (@KaikoData)
September 18, 2024

Altcoin Surge and Subsequent Dip in 2024

At the beginning of the year, most of these cryptocurrencies shared a similar upward trajectory. Altcoins, especially SOL, DOGE, and TON, saw a significant spike by mid-May.

Solana had the most growth, briefly exceeding 200 index points. During this time, Bitcoin’s performance was moderate, though it did climb above its starting index of 100.

However, by the third quarter, this trend started to reverse. Bitcoin, which had previously underperformed against most altcoins, began to rebound or hold its index value. Meanwhile, the altcoins—especially Ethereum—began trending downwards.

Read also: Beyond Ethereum: Solana, Sui Lead Altcoin Surge, Analyst Notes

Ethereum’s decline coincided with the launch of spot ETFs on July 23, 2024, suggesting potential market shifts or evolving investor sentiment around the asset. ETH dropped from $3,425 on July 22 to $3,278 on July 30, a decrease of 4.3%, according to CoinMarketCap ETH price history.

Altcoins’ Volatility vs. Bitcoin’s Stability

Overall, the data indicated that while altcoins had periods of strong growth earlier in the year, their mid-year gains were short-lived. Conversely, Bitcoin showed resilience by the third quarter, with its decline being less pronounced than the altcoins. This would point to Bitcoin’s stability compared to the altcoins’ volatility.

This analysis underscores the importance for investors to recognize the inherent risks of altcoin investments, which typically offer higher returns but also come with greater fluctuations. Bitcoin’s steadier performance in Q3 might make it more appealing for those seeking stability in an unpredictable market, while altcoins remain a high-risk, high-reward option.

Read also: Altcoin Season Dawning? Analyst Sees Bullish Shift

As of press time, Bitcoin hovers around $ 62,000; an almost 7% rise in just as many days. Meanwhile, Ethereum keeps changing hands at around $2,400, rising just about 2.30% over the week.

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