Bitcoin’s (BTC) failure to make a strong recovery in the past few days has resulted in profit-booking in most major altcoins, threatening to pull the total crypto market capitalization back below $2 trillion.
The U.S. equity markets witnessed profit-booking and the S&P 500 dropped by 1.69% last week, suggesting the development of a risk-off sentiment. Charles Edwards, CEO of investment manager Capriole, pointed out that “almost every Bitcoin correction in 2021” has corresponded with a 2% or more drop in the S&P 500.
Daily cryptocurrency market performance. Source: Coin360
Irrespective of the near-term weakness in Bitcoin, MicroStrategy has continued to build its holdings. The company’s CEO Michael Saylor recently revealed a purchase of 5,050 Bitcoin bought at an average price of $48,099 per coin. This has increased the company’s stockpile to 114,042 Bitcoin, bought at an average cost of about $27,713 per coin.
Is Bitcoin in a firm bear grip and could this result in a sell-off in major altcoins? Let’s study