Traders warn about Ethereum and DeFi tokens as momentum dwindles against Bitcoin

In the past week, the alternative cryptocurrency market has further slumped against Bitcoin.

Since October 8, the price of Bitcoin has increased from $10,600 to $12,311 by 16%. In the same period, Ethereum rose by 12% from $337 to $379. Led by the underwhelming performance of Ethereum, altcoins and DeFi tokens have struggled against Bitcoin.

CoinMarketCap's Bitcoin dominance index increased from 56.67% to 60.6% in the past month.

The metric indicates that the dominance of Bitcoin over the rest of the market is increasing.

Would the trend of Bitcoin outperforming Ethereum and the cryptocurrency market continue?

Although Ethereum and altcoins have not performed badly against the U.S. dollar, against BTC, both have grappled.

In the short term, at least, the trader said he expects Bitcoin to perform well as the benchmark.

Since early October, the altcoin market has underperformed against Bitcoin and is continuously losing its momentum.

For the appetite for Ethereum and DeFi tokens to recover, the ideal scenario would be for BTC to pull back.

Kelvin Koh, a general partner at Spartan Group, said the pullback of DeFi tokens against Bitcoin has pushed them to oversold territory.