Altcoins lead rally…Bitcoin belatedly chases uptrend

Altcoins lifted the coin market…market cap $2.8 trillion, Bitcoin ‘chasing’

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Altcoins have taken the lead in the cryptocurrency rally, pushing the total market capitalization up to $2.8 trillion. Amid a series of measures from US regulatory authorities stimulating altcoin investment sentiment, Bitcoin (BTC) has also surpassed $80,000, but analysis suggests that further upward confirmation is needed as it has not yet fully broken through key resistance levels.

According to investment media outlet FXStreet on September 21 (local time), the total cryptocurrency market capitalization rose to $2.8 trillion, reaching its highest level since late January this year. Although selling pressure increased after Friday's rally, buying pressure regained dominance from Sunday, and as of the start of major European trading hours, the market capitalization increased by 6% compared to a week ago. In particular, altcoins have once again led the uptrend following regulatory actions by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with Near Protocol (NEAR) surging 24.4%, Avalanche (AVAX) 14.5%, and The Graph (GRT) 10% in the last 24 hours.

In contrast, Bitcoin lagged relatively. BTC rose 5% on a weekly basis to $81,600, surpassing the psychological resistance of $80,000, but has not yet technically broken through the resistance formed at the highs of early September and May. However, last week's weekly candle closing above the 50-week moving average is the first time since November last year. FxPro assessed the current market as a bull market but cautioned that vigilance is needed until clear signals of a full uptrend emerge, as the possibility of a sharp correction remains.

Changes in the regulatory environment were also cited as a backdrop for market recovery. The Block analyzed that regulatory actions, which followed delays in the processing of the US crypto market structure bill and the Clarity Act, influenced the market rebound. On Thursday, the SEC allowed the limited trading of tokenized stocks on some blockchain platforms for five years, and the next day, the CFTC submitted a draft of regulations concerning cryptocurrency trading and markets to the White House. Consequently, Uniswap (UNI) and Hyperliquid (HYPE), related to decentralized exchanges, also showed an upward trend.

Positive news also continued in individual ecosystems. Grayscale reiterated $58,000 as Bitcoin's bottom in the current bear cycle and signaled to clients that they could engage in cryptocurrency investments. Ethereum Institutional, an institutional body related to Ethereum (ETH), supported the 'EIP-8198 Quick Slots' proposal to convert fixed slot times into adjustable variables. The media described this as a change that could enhance Ethereum's appeal as a foundation for financial markets.

The key to the current market is whether the altcoin bull run can lead to further gains for Bitcoin. While altcoins have surpassed their May highs, BTC has not yet confirmed a breakthrough of key resistance. FxPro analyzed that although the altcoin strength is creating a favorable environment for Bitcoin buying, it is necessary to confirm clearer signals that the market has transitioned to a full uptrend, as the possibility of a sudden correction cannot be ruled out.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*