BTC Market Cap Dominance Falls; Andre Cronje Leaves DeFi

Chart of the Day

Over the past weekend, the broader crypto market underwent another downside correction on the back of worsening geopolitical tensions. BTC extended its Friday decline into the weekend, and its gains from the short-lived rally that took place early last week are now completely wiped out. As of the time of writing, the largest cryptocurrency by market cap has experienced a 2.7% loss in the last 24 hours, and is currently trading just around the $38k level and the 100-hourly moving average. Unfortunately for BTC, its upside momentum will likely be limited by the immediate resistance level near the $38.5k mark, at least in the near-term. On the other hand, BTC could very well extend its decline below the $35k level if the support at $37.4k doesn't hold. In a similar vein, ETH is down by 5% from 24 hours ago, while most major altcoins have also posted negative returns within a similar timeframe. In fact, most altcoins, with the exception of LUNA and NEAR, are actually all in the red if we consider a timeframe of the last seven days. On a brighter note, on-chain metrics do still seem to suggest a potential BTC supply shock in the near term, as the liquid supply of BTC in circulation has just reached new lows. Meanwhile, BTC's market cap dominance has also done a huge U-turn in recent days after inching towards past highs near the 43% level within the past week. This may imply a rotation of capital into altcoins, and is a situation that investors should all keep a keen eye on.