Ethereum killers and layer-2 tokens rally despite 5% Bitcoin price drop

On February 10, Bitcoin (BTC) was down 5% from a newly established high of $ 48,220, and a number of altcoins also underwent minor corrections.

Data from Cointelegraph and TradingView markets shows that Bitcoin has fallen 4.96% since its highs yesterday and is currently trading at $ 44,900.

The pullback to the $ 45,000 level could simply be the result of traders taking the recent profits from Bitcoin and altcoins as the rally appears to be losing momentum around the $ 48,000 level.

The recent announcement from JPMorgan analysts saying they do not expect to see any large companies tracking Tesla’s recent $ 1.5 billion bitcoin purchase could have caused tension among some investors, but data from Grayscale Investments shows that most institutional investors are eager to know. More on investing in BTC.

4 hour chart BTC / USDT. Source: TradingView

Some positive news came from Twitter CEO Jack Dorsey, who stepped up his support for the crypto sector by donating $ 1 million to Coin Center, an advocacy group based in Washington, DC. Dorsey also revealed that Twitter is exploring an option for how BTC employees are paid.

Congestion and high transaction fees on the Ethereum network have highlighted the layer-2-compliant and Ethereum Virtual Machine (EVM) protocols as traders and enterprises alike flock to Matic (MATIC) and Avalanche (AVAX).

This constant flow of funds into each project has sent prices up by more than 200% over the past week.

AVAX / USDT vs BNB / USDT vs Matic / USDT 4-hour price growth chart. Source: TradingView

Binance Coin (BNB) has also seen a spike in prices in recent days, reaching a new high of $ 148 on February 10. The move to an all-new high comes as Binance Smart Chain (BSC) grows in popularity and competes with Ethereum and DeFi platforms.

The traditional markets are declining after hitting all-time highs

The three main stock market indices hit new record highs in today’s early trading hours, before falling under pressure to close the day in mixed fashion.

The S&P 500 and NASDAQ indices spent most of the day in the red and despite the late rally they closed down 0.03% and 0.25% respectively while the Dow was able to drive the bears out and finish off a 0.20% rally.

Although there is no specific news to spur market pressure, all three indices saw prices rise during the first week of February, so a modest downturn in the normal market cycle is expected.

Bitcoin correction affects altcoins

A new wave of selling hit the cryptocurrency market just as the traditional markets closed and the top 25 altcoins fell under pressure.

Notable exceptions to the bearish bearishness include Cardano (ADA), which is currently up 28.11% and trading at $ 0.892 USD, AVAX which is up 85.39% and trading at $ 58.26.

Daily cryptocurrency market performance. Source: 360 coin

Celo (CELO) is also put in strong showing, rising 40% to trade at $ 5.00 while the graph (GRT) saw a 26% rise to an all-time high of $ 1.26.

The total cryptocurrency market cap is now $ 1.37 trillion and Bitcoin’s dominance rate is 61.3%.