Will range-bound Bitcoin fuel an altcoin rally?

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Bitcoin’s ^[1] price correction in the ongoing rally was rather short-lived and the asset is back trading at the $32400 level based on data from CoinMarketCap. Though traders endured losses in the dip, and institutions continued buying, the dip was rewarding for altcoins as it changed the direction of investment flow. Against 100% wallets HODLing Bitcoin being profitable, currently, there are 88% HODLers in profit. The dominance of Bitcoin ^[2] is at 63.9% and this suggests that the active supply hitting exchanges may indicate a sell-off and bearish sentiment among users, buying altcoins with double-digit gains. In the current market cycle, altcoins like LINK, UNI, ATOM, MKR, and CEL are in the top 40 altcoins based on market capitalization, and the sideways rally of Bitcoin may have led to double-digit gains for these altcoins in the past 24 hours.

More specifically, based on the ROI of several altcoins, averaged over 30-days higher gains were posted since December 2020.

ROI on altcoins || Source: Coinmetrics ^[3]

There is a significant increase in ROI in the past week for top altcoins in the chart, for XLM and AAVE, there has been an increase from 20% to 120%. Due to the correlation with Bitcoin, it is safe to conclude that it is likely that Bitcoin’s rangebound price rally fueled the boost in altcoin price and ROI, though the overall market cap may have dropped. The top altcoins that

Will range-bound Bitcoin fuel an altcoin rally?

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