When Altcoins Dance and Tether Takes a Nap: A Crypto Comedy

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  • The altcoin market had a brief moment of glory, outshining Bitcoin like a disco ball in a dark room.
  • Falling Tether reserves are like a warning sign at a buffet: less buying power means fewer seconds!

Bitcoin, that old reliable, surged to $107.1k, tantalizingly close to its all-time high of $108.8k, making the crypto market feel as bullish as a bull in a china shop. But wait! In a post on X, the illustrious Joao Wedson, Founder and CEO of Alphractal, reminded us that sentiment can be as sharp as a double-edged sword—perfect for slicing through optimism!

Such exuberant sentiment can signal fresh capital inflows, like a sudden rainstorm in a drought. But hold your horses, enthusiastic bulls! It’s wise to temper those expectations, especially since prolonged periods of bullish conviction often mark the top of the market, trapping the bulls like a cat in a room full of rocking chairs.

How well are the altcoins faring?

For a glorious five days, altcoins ran amok, like children in a candy store. This was evidenced by the fall of Bitcoin Dominance, as well as the TOTAL2’s rapid ascent, which we shall explore next. The BTC.D had tested the 62% area as resistance in February and March, and then, like a daring acrobat, breached this zone convincingly in April.

After hitting a local high of 65.38%, it plummeted to 61.89%. This drop in BTC.D implied that the altcoin market cap was growing faster than Bitcoin, which is like saying a tortoise is outpacing a hare—if the hare had a penchant for naps.

Over the past five days, Bitcoin Dominance has recovered, signaling that a full-fledged altcoin season was not quite in the cards—more like a rainy day picnic.

The altcoin market cap, excluding Bitcoin, saw a retest of the $1.17 trillion-mark. Like the BTC.D, the TOTAL2 is also subject to technical analysis, which is just a fancy way of saying we’re trying to predict the unpredictable. The altcoin market cap was on an uptrend but faced stiff resistance near its February highs, like a stubborn mule refusing to budge.

A move beyond $1.31 trillion will surely make altcoin investors cheer louder than a crowd at a rock concert.

However, the Tether reserve metric flashed a warning signal, like a red light at a traffic stop. As the market’s most popular stablecoin, a hike in USDT reserves would imply higher buying power, which is akin to finding a forgotten $20 bill in your winter coat. Since mid-March, Tether reserves have been dwindling, reflecting reduced buying power at a time when Bitcoin was flirting with old and new ATHs. The last time such a decline in Tether reserves occurred was back in June-July 2024, a time when many were left scratching their heads.

In just over a month, the altcoin market cap fell by $275 billion—a 23.5% drawdown that would make even the most stoic investor weep. From February to April, the altcoin market cap has fallen by 30%. And now, it seems unclear if the Tether reserves will continue to decline—an interesting factor to keep an eye on, like a cat watching a laser pointer.

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2025-05-20 10:29