Analysis: Currently, altcoins as a whole follow the trend of Bitcoin, indicating that the market is stable in the short term

Odaily News Joao Wedson, an analyst at CryptoQuant, wrote: "Currently, we observe a positive correlation between altcoins and Bitcoin, which indicates that these cryptocurrencies have followed the price movement of Bitcoin in recent days. This behavior shows the consistency of the crypto market, and altcoins move in sync with Bitcoin, reflecting investors' confidence in the entire market. A historical fact worth noting is that when the Average Altcoin Correlation tends to be negative, this has historically been a warning sign for Bitcoin and the entire market. This negative correlation usually occurs when altcoins perform significantly better than Bitcoin, usually before Bitcoin prices fall, and investors often need to be cautious. We can clearly see this phenomenon in January, June and July 2024, during which time altcoins outperformed Bitcoin. Soon after, the market experienced a 'sell-off', especially Bitcoin. Currently, altcoins such as BNT, AXS, LINK, ALGO and ADA have the highest correlation with Bitcoin. On the other hand, altcoins such as DASH, CRV, DYDX, BNB and ALICE have the lowest correlation levels, indicating that their movements are more independent of Bitcoin. Overall, though, all of these altcoins still exhibit positive correlation, indicating that despite individual differences, they all follow the movement of Bitcoin. This behavior reinforces the view that the market is currently moving in lockstep with Bitcoin, which could indicate short-term stability but also requires continued vigilance to identify potential deviations that could indicate higher risk.”