The Bitcoin bull market is herethe asset is trading at nearly $ 30,000, and a terrible year has just come to an end – investors have a right to celebrate and have a little fun with their winnings. But one altcoin recently sent sky high, was immediately knocked down again, tracing almost the entire movement.
Speculation points to a pump and dump group behind the surprise movement, but there may be another factor involved that can be considered a dark cloud hanging over altcoins for many months.
FUN is over: Altcoin Experiences “Brute” pump and dump against Bitcoin
Bitcoin rallied from a low of $ 3,800 in 2020 to close the year at $ 29,000. There is a bull market back for the major cryptocurrencies, and investors are paying attention to the eventual breakout of altcoins over the rest of the market.
For example, Ethereum is trading at about 50% of its former all-time high, while Bitcoin is 50% higher. Due to the divergence, some shark-like investors are looking for the right opportunity amid the blood.
Related reading | Bitcoin Dominance Doji: Why 2021 Could Be Doom for Altcoins
Certain altcoins exhibit structures that look poised for a breakout against BTC, and one altcoin of the last bull run did just that.
But in just an hour the whole rally was traced, leading the crypto community to speculate whether pump and dump groups have reverted to crypto. These groups coordinate efforts to create a mintprice, only to ditch it when FOMO is lit enough.
They were hugely popular at the height of the crypto bubble in 2017, and they could be back. Or could it be a sign of something else?
Pump and dump? Or did a whale end all the fun? | Source: FUNBTC on TradingView.com
The other side of The Mint: Older crypto assets face wave of sellers on their way to backup
Although it could very well be fun and games for one pump and dump group, a “whale call” that warns users of a massive amount of FUN tokens being moved could have tipped anyone off about the coming dump.
With altcoins still as low, and potentially more at risk for the asset class as the SEC is starting to tighten up regulations, whales can wait in the water, ready to liquidate their tokens as soon as possible.
Most altcoin investors who came in around 2017 are still underwater and can wait to sell as soon as they can, if only to exchange for Bitcoin. It could be the main factor as to why no alt season has returned and the short duration of summer has been maintained only DeFi tokens and other new alts.
Featured image from Deposit Photos, Charts from TradingView.com