Bitcoin’s (BTC) recent plunge could have been caused due to profit-booking by institutional investors, according to a report by crypto fund manager CoinShares. The report noted a sharp drop in institutional inflows during the first week of the new year and weekly outflows from several crypto investment products.
Crypto market data daily view. Source:Coin360
While the recent 28% decline may have scared some new investors, Bitcoin HODLers were likely unfazed as they’ve encountered six larger corrections during Bitcoin’s massive bull run in 2017. Therefore, describing a 20% fall as a bear market may not apply to cryptocurrencies.
As Bitcoin attempts to stage a recovery, let’s analyze three altcoins that may outperform in the short term.
As Ether’s price neared its all-time high, traders focused their attention on it’s competitors, one of them being IOST. In a bullish environment, traders usually buy the rumor of an impending announcement and this appears to have happened with IOST.
IOST co-founder Terrence Wang has been teasing prospective announcements about an IOST-based stablecoin, DeFi integration and big partnerships. Each of these announcements may have played some role in boosting interest from traders.
Recently, XPET’s 2D Game “Dream Monster” was launched on IOST blockchain. Players can store and trade the game’s core assets such as rare pets, equipment, genetic characteristics, attributes, and much more in the form of NFTs on the IOST chain.
IOST’s focus on a decentralized finance ecosystem and NFTs could keep traders plugged in. The project also recently received awards for…