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Bitcoin Rises and Extends Its Lead as Altcoins Lose Ground

Bitcoin is benefiting from fresh capital inflows and holding key support, while altcoins remain under pressure. The rise of synthetic contracts is also adding to market risks.

By Mike Hesp
• 2 min read
Bitcoin Rises and Extends Its Lead as Altcoins Lose Ground

Key Takeaways

  • Bitcoin rose 2.4% on Thursday to around $62,800 and increased its market dominance from 57.9% to 59%.
  • Ethereum, Solana, and other major altcoins are still below their 200-week moving averages, which points to growing pressure in the altcoin market.
  • Synthetic pre-IPO contracts and tokens like BEAT and VELVET are showing big price moves, but they also come with high risk and criticism.

Bitcoin rose 2.4% on Thursday to around $62,800 (€54,400), strengthening its dominance in the crypto market. Bitcoin dominance, which is Bitcoin’s share of the total market value of cryptocurrencies, rose from 57.9% last week to 59%. That points to a fresh wave of capital flowing into the largest cryptocurrency, while major altcoins like Ethereum (ETH) and Solana (SOL) are struggling to break through technical resistance levels.

Bitcoin Holds Key Technical Support

Bitcoin’s price stayed above its 200-week moving average, a crucial technical level. At the same time, other major altcoins, including XRP, ETH, and SOL, are trading below their respective 200-week moving averages. This suggests bearish pressure on altcoins is building, while Bitcoin remains relatively stronger. Bitcoin’s stability at this level could give investors some confidence, especially in a market where volatility and uncertainty are still dominating.

Rise of Synthetic Contracts and Token Performance

Beyond Bitcoin, one of the biggest standouts was the sharp rise in lesser-known tokens like Audiera’s BEAT, which jumped more than 500% in seven days, and Velvet’s VELVET token, which surged an impressive 800% in 30 days. VELVET is benefiting from the popularity of pre-IPO perpetual futures, synthetic contracts that let traders speculate on the valuations of companies like SpaceX and OpenAI before they go public. These contracts are risky, though, because they do not represent shares, dividends, or voting rights, and their prices can move far away from actual funding rounds or IPOs.

Volatility in these markets is high, as shown by a 45% flash crash in a synthetic SpaceX contract on Hyperliquid. There has also been criticism of the VELVET token because of the gap between its market value and the actual assets the platform holds, along with concerns about possible manipulation and selling pressure after the fast price run-up. Interest in SpaceX-related trading shows that the company’s possible IPO is also spilling over into crypto derivatives and tokenized products, not just the stock market.

What This Means for European Crypto Investors

For European investors, Bitcoin’s stronger dominance and the ongoing technical weakness in altcoins could point to a market where risk-off behavior is increasing. The rise of synthetic contracts tied to pre-IPOs opens up new trading opportunities, but it also brings extra risks that need to be understood clearly. That may matter for investors looking to diversify beyond traditional cryptocurrencies, but it also highlights how important caution is when entering less regulated and more volatile parts of the market.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.