Analyst: In the context of increased Bitcoin volatility, the resilience of altcoins may indicate that their correlation with Bitcoin is weakening

According to The Block, major altcoins have outperformed Bitcoin in terms of weekly and monthly indicators, showing greater stability even amidst recent significant fluctuations in Bitcoin. After Bitcoin hit a historic high of $103,000, its price fell by more than 5% within the past 24 hours, dropping below the $100,000 mark. In contrast, altcoins like Ethereum and Solana only experienced about a 1% minor pullback during this decline.

André Dragosch, European Research Director at Bitwise stated that since the US elections in early November, an increasing number of altcoins have been performing better than Bitcoin. The Altcoin Season Index shows that over the past 30 days, 85% of tracked altcoins outperformed Bitcoin. Furthermore, it appears that diversified investment narratives are driving altcoin performance which is becoming increasingly differentiated.

Dragosch pointed out that Bitwise's data indicates a weakening correlation between Bitcoin and major altcoins. He explained: "The performance correlation between altcoins and bitcoin has significantly decreased." A lower correlation means compared to before the US election; there is now a higher probability for Altcoins to achieve excess returns or perform better than bitcoin.