CDS Crypto News Bitcoin vs Altcoins: Which is the Safer Bet Amid March 2025 Volatility Spike?
Crypto News

Bitcoin vs Altcoins: Which is the Safer Bet Amid March 2025 Volatility Spike?

10
Bitcoin Vs Altcoins: Which Is The Safer Bet Amid March 2025 Volatility Spike?

Bitcoin vs Altcoins – Altcoins Skyrocket in March 2025: Is ADA, SOL, and XRP the New High-Risk, High-Reward Play?

Bitcoin vs Altcoins – In March 2025, altcoins such as Cardano (ADA), Solana (SOL), and XRP experienced a sharp spike in realized volatility, with ADA hitting a record high of 150%, while SOL and XRP both surpassed 100%. In contrast, Bitcoin (BTC) saw significant volatility but remained relatively stable at 50%, far below its historical highs.

Altcoins Exhibit Higher Risk and Speculation

The surge in ADA, SOL, and XRP volatility signals heightened price fluctuations, typical of altcoins. These assets are more susceptible to speculative trading driven by news, rumors, and community sentiment. XRP, in particular, has been sensitive to regulatory developments, such as the ongoing SEC lawsuit, which has contributed to unpredictable price swings.

During market uptrends, traders often shift funds from Bitcoin to altcoins in search of higher returns, exacerbating altcoin volatility. While this provides opportunities for larger profits, it also significantly increases the risk of losses.

Bitcoin Vs Altcoins: Which Is The Safer Bet Amid March 2025 Volatility Spike? 335195
Source: CryptoQuant

Ethereum’s Rising Leverage and Increased Risk

Ethereum (ETH) is also showing signs of this heightened risk. Despite ETH dropping below the $2,000 support level and increasing exchange reserves, its Estimated Leverage Ratio (ELR) has surged to a monthly high, indicating greater risk exposure in the derivatives market. Traders are leveraging positions on both sides, amplifying the price swings, creating a “high risk, high reward” environment.

Bitcoin: A Safer Haven Amid Growing Uncertainty

In contrast to altcoins, Bitcoin has shown more stability. Although BTC has experienced volatility spikes above 100% in the past, its performance in March 2025 suggests a more stable price structure. While Bitcoin’s lower volatility curtails short-term profits, it reinforces its role as a long-term store of value, providing a safer haven for investors.

Bitcoin Vs Altcoins: Which Is The Safer Bet Amid March 2025 Volatility Spike?
Source: Santiment

With altcoins becoming a more volatile speculative play, Bitcoin seems to solidify its place as the preferred asset for long-term holding.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.

Bitcoin Vs Altcoins: Which Is The Safer Bet Amid March 2025 Volatility Spike?
Written by
Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

Leave a comment

Leave a Reply

Related Articles

Turkey Tightens Crypto Rules: Here’s What the New Rules Mean

For more comprehensive information on Turkey tightens crypto rules, please visit CDS.

IP Bulls Take Charge: While the Market Bleeds, Story’s (IP) Surges

IP bulls take charge! For more comprehensive information about Story Protocol's token...

Palantir Gains Momentum with New Clients: Investors Rush In!

For more comprehensive information about Palantir gains momentum and the current status...

Bitcoin at a Crossroads: BTC Must Reclaim $89K to End Slump, Analyst Warns

For more comprehensive information on Bitcoin at a crossroads and current BTC...