Extreme Volatility: Bitcoin Holds Up as ERC-20 Tokens Collapse

Bitcoin may not have made spectacular leaps in recent days, but its resilience commands respect. While the crypto market sways under pressure, BTC holds its ground, oscillating between $95,000 and $98,000. On one hand, the bulls are struggling to get the machine going, while on the other, the bears lack the bite to drive the nail in. But while Bitcoin hesitates, altcoins and ERC-20 tokens are suffering severely.

Bitcoin in survival mode: altcoins under pressure

If Bitcoin holds strong, the altcoins, on the other hand, are taking on water . Ethereum and its ERC-20 tokens show worrying signs, weighed down by sluggish adoption and a market that is turning its back on them. According to Glassnode , all ERC-20 sub-sectors – DeFi, gaming, and utility tokens – are going through a lean period.

Some figures set the tone:

• The majority of ERC-20 tokens are being sold in bulk, with a high correlation between them,
• The PCA analysis reveals that few tokens escape this rout,
• The weakness of the market reflects a growing distrust among investors towards alternative cryptos.

As a result? A movement of capital in favor of Bitcoin, the safe haven of the moment. While altcoins seek their salvation, BTC once again proves that it remains the boss of the crypto market.

A crypto market hanging by a thread

Bitcoin continues to act like a tightrope walker between key levels. Currently at $96,197, it moves in a tight range, caught between a tough resistance at $98,000 and a crucial support at $95,000.

The bulls hope for a breakout beyond $100,000 to reignite the momentum, while the bears are watching for any misstep to push the BTC price below $95,000.

Jameson Lopp, co-founder of Casa, sums up the situation well:

“The price of Bitcoin is volatile because it is still in a discovery phase. Its value is not.”

In other words, the prevailing chaos does not call into question BTC’s place but maintains an unbearable suspense over its immediate future.

If the support at $95,000 gives way, a correction towards $89,000 could set in. Conversely, a clear break of $100,000 would open the way for a rise towards new heights.

The coming days will therefore be crucial in deciding between a bullish explosion and the continuation of uncertainty.

Michael van de Poppe and other analysts remain optimistic: they believe that Bitcoin could reach a new ATH within two to three weeks . Their argument? The recent rise in gold, which could well signal an imminent takeoff. Stay tuned…