The latest Bitcoin price correction on the cryptocurrency markets was inevitable, and it may not last very long. After reaching a historic high of $61,000, Bitcoin seemed to be on track to take things further and dance around the $65K level, but not before active traders swooped in to take profits during a highly volatile trading session on Tuesday. This kind of pullback has come to be expected, but it had an unusual effect on other digital currency tokens.
It did not take long for bullish traders were to create another rally situation for Bitcoin; as of Wednesday morning, there were spikes of volatility inching closer towards $57K, which suggests that active traders are chasing the $60K psychological support level. All the same, a couple of tokens were surpassing BTC in terms of value appreciation: Cardano and the Basic Attention Token. We should have seen these tokens either plummeting or losing considerable value gradually over a couple of days, but they opposite has happened. Some analysts are seeing this as a sign that the cryptocurrency markets are reaching full maturity.
When Bitcoin goes through a market correction, it usually takes major competitors such as Ethereum down as well; in fact, it is not unusual to see all other tokens lose value in tandem with BTC/USD. This is an interesting, but normal, occurrence for Bitcoin because most altcoins have similar characteristics, thus there is great market uncertainty, which is another reason for Bitcoin's volatility. A similar event would normally drive the value of BTC down a few percent, because of the uncertainty in the price.
A large part of Bitcoin's volatility is due to market uncertainty, but at times it also shows up as the market's lack of foresight. For example, after the introduction of Bitcoin Cash, it took about a year before they realized what they had done, because they felt the market was still being misled. This is when Bitcoin could go through the collapse. In all other markets, the market is fairly well developed, a long chain of supply and demand creates equilibrium, and the uncertainty does not affect the fundamental value of the currency.