Altcoins remain resilient amid Bitcoin correction: Bitfinex

Analysts at Bitfinex crypto exchange say altcoins have remained strong amid Bitcoin (BTC)'s roughly 12.5% ​​correction over the past week.

According to the latest Bitfinex Alpha report, the resistance of the altcoin market was shown in the Total3 index, which reached a new cycle-high market capitalization of $ 788 on March 14, although it fell by 14% due to a broad market correction. The amount is less than BTC in absolute terms.

Altcoins show remarkable resilience

The Total3 index tracks the price performance of all crypto assets except BTC and Ether (ETH). The index's new cycle high represents a 74.23% increase from its high point during the bear market. That's 6.5% shy of a record $837.5 billion by April 2022.

Bitfinex says the trend reflects the high investment growth in altcoins and the diverse landscape in the crypto market. With the Total3 index breaking an all-time high of $837.5 billion, altcoins will move into a mania phase thanks to heightened investor enthusiasm and sector-wide gains. This results in a massive boom in altcoin speculation and investor interest.

While altcoins have been showing impressive growth, ETH has failed to register significant gains following the March 13th Denkun update. Analysts said the update did not provide a strong narrative to further boost the cryptocurrency's value at a time when most altcoins were doing well.

At press time, ETH/BTC prices had moved to their bear market low of 0.049 BTC, a level tested on January 9, before the launch of Bitcoin Exchange Traded Funds (ETFs). Regardless, on-chain metrics point to a bullish narrative for ETH because other Ethereum-based altcoin projects are doing well, and there is strong support for ETH/BTC at the current level.

Bitcoin ETF flows stabilize

On the other hand, Bitcoin has lost every bit of its gains in the first two weeks of March. At the time of writing, according to data from CoinGecko, BTC has fallen by more than 7% in the last 24 hours and hovered around $63,100. Bitfinex's 12.5% ​​drop is the asset's second biggest drop since the adoption of the spot Bitcoin ETF, the biggest one-day drop being 15%.

Meanwhile, Bitcoin ETF earnings have stabilized recently, indicating a balance in investment flows.