Bitcoin Shows Potential for Further Growth Amid Cryptocurrency Divergence in 2024

Data from Sentimentrader, referenced by The Kobeissi Letter, reveals that as of July 12, a minority of cryptocurrencies are trading near their 252-day peak, defined as within 5% of their historical highs. This contrasts sharply with Bitcoin’s performance during its record-setting rallies in February and November 2024, when roughly 75% and 40% of digital assets, respectively, hovered close to their yearly highs. Historically, Bitcoin experiences corrections when a significant portion of altcoins approach their peak valuations. This current decoupling between Bitcoin and the broader crypto market indicates a potential upside for Bitcoin’s price trajectory, suggesting that the flagship cryptocurrency may not yet have reached its full growth potential in the current cycle.