Bitcoin litecoin whats next

First Mover: Don’t Like $34K Bitcoin? Stellar, Litecoin Yet to Conquer Old Highs

Bitcoin snapped a four-day losing streak, appearing to stabilize around $34, After the recent market correction, prices for the cryptocurrency are still up 18% year to date, versus a % gain for the Standard & Poor&#;s Index of large U.S. stocks.  

&#;Now is probably not the time to panic,&#; Matt Blom, head of sales and trading at the cryptocurrency exchange firm Diginex, wrote in a daily newsletter. 

In traditional markets, European shares fluctuated and U.S. stock futures were little changed as the U.S. House of Representatives on Wednesday prepared to vote on a second impeachment of President Donald Trump. Gold strengthened % to $1, an ounce. 

As bitcoin and ether retreat from recent highs, the strong performance of other cryptocurrencies shows that traders and investors may now be turning to alternative tokens, often referred to as &#;altcoins,&#; for returns.

Bitcoin prices as of Jan. 11 stood at about 87% of their all-time high reached last week, and ether is about 78% of the way toward its all-time high from a few years ago, based on data compiled by CoinDesk Research. 

But other cryptocurrencies and digital assets, such as stellar (XLM) and litecoin (LTC), are still far from setting new records. One takeaway might be that they might have further to run, CoinDesk&#;s Muyao Shen reported Tuesday.

Altcoins are surging &#;in ways that we have not really seen since ,” Andrew Tu, an executive at quant firm Efficient Frontier, told Shen.

It&#;s possible, of course, that some entry-level investors viewing bitcoin&#;s $34,ish price – what a small sport-utility vehicle costs – are unaware that the largest cryptocurrency can be bought in minute fractions, similar to the way that it&#;s possible to buy $ or $1, of gold. 

Such confusion in the past has led some newbie investors to turn to altcoins, because their prices are often comparatively lower, sometimes counted in cents. 

David Derhy, an analyst at the trading platform eToro, wrote earlier this week that some traders might shift toward ether, the base cryptocurrency for the Ethereum blockchain.   

&#;Investors in bitcoin may be looking to take some profits and reallocate, and ether could be a target,&#; he wrote. &#;A target of $2, is reasonable given the gains we have already seen and current price momentum.&#; Such a level would represent a gain of nearly % from the current price. 

Simplex, a digital-asset platform, has been seeing &#;increasing demand for cryptos across the board,&#; though &#;retail investors seem to be looking for the next BTC,&#; CEO Nimrod Lehavi, wrote in a Google doc, sent by a spokesman via Zoom&#;s chat function.

“We are used to seeing BTC dominate around 90% of the total volumes of trade,&#; says Jonathan Leong, CEO of BTSE, another crypto platform. &#;But the recent week or so has seen a rise in our institutional clientele’s demand and interest in altcoins, with the balance being almost at certain times.”

Bitpanda, an Austrian cryptocurrency platform, has seen bitcoin drop to between 30% and 40% of customer purchases this year, from 40% to 50% last year, according to a spokeswoman.  

&#;We have a big influx of users, and they are trading both bitcoin and altcoins,&#; the spokeswoman, Sara Moric, said in an email.

&#; Muyao Shen and Bradley Keoun 

Read More: Multiple Tokens See Rally Amid Looming ‘Alt Season’

The near-term outlook for bitcoin has dimmed, analysts say, with some now seeing a possible extension of Monday’s major price drop.

“There could be another dump as outflows from the cryptocurrency exchange Coinbase Pro have dried up alongside an increased transfer of coins onto exchanges,” David Lifchitz, chief investment officer for Paris-based quantitative trading firm ExoAlpha, told CoinDesk.

Outflows from Coinbase Pro – considered a proxy for purchases of the cryptocurrency by big institutional investors, since the outflows are typically seen as transfers into cold storage for long-term holding – have receded sharply from the three-year high of 55, BTC  observed Jan. 2. 

The decrease could signal a weakening in institutional demand, which played a pivotal role in pushing bitcoin last week to a new all-time high above $41,, from about $10, just a few months ago.

Meanwhile, exchange deposits have gathered pace, a sign that some investors may be looking to liquidate holdings and take profits. 

The number of coins held on exchanges increased by over 57, BTC on Tuesday, the biggest single-day change since March , according to data from blockchain analytics firm Chainalysis. Exchanges have registered an average inflow of , BTC per day in the past seven days – higher than the day average of 83, BTC.