Only 8 Altcoins Have Broken ATH Against Bitcoin Since FTX’s Collapse – Analyst Weighs In
31 Maio 2024 - 10:00PM
NEWSBTC
During this bull cycle, the crypto market has been surfing off
Bitcoin’s crest and enjoying the bullish momentum. However,
investors hope for a seismic explosion to impulse Altcoins to new
highs. Related Reading: Lil Pump-And-Dump: SEC Issues Warning As
More Musicians Dump Their Memecoins As the crypto industry awaits,
online reports revealed that, since FTX’s fall, only eight altcoins
have hit a new all-time high (ATH) against Bitcoin. A crypto
analyst shared his thoughts on the matter. Altcoins Underperforming
Against Bitcoin This Cycle On Friday, Crypto analyst Miles
Deutscher shared an interesting fact about the crypto market. Since
November 2022, just eight altcoins have broken their previous ATH
against the flagship cryptocurrency. To achieve this feat, tokens
include Render (RNDR), Tellor (TRB), Injective (INJ), Astar (ASTR),
SSV Network (SSV), SingularityNET (AGIX), True Wallet Token (TWT),
and Binance Coin (BNB). It’s worth noting that RNDR was the latest
one to accomplish this on March 11 and that the list only contains
altcoins launched before FTX’s collapse. Deutscher explained that
despite his initial shock, the news made sense to him and
highlighted some takeaways based on the singularities of this run.
First, the analyst considers that asset selection dynamics changed
from previous cycles. Investors have been “punished” for being
overexposed to certain sectors like L2 and gaming and “rewarded”
for participating in others like Memecoins and AI. In contrast, in
the last cycle, “you could basically bet on anything and beat
$BTC.” According to the analyst, the market will likely continue
experiencing specific sector outperformance despite the retail
liquidity injection. He also explained that “crypto is an attention
economy,” and money will flow where attention is. As a result, even
the projects with the best technology won’t perform if there isn’t
an exciting reason to buy. Deutscher’s second takeaway highlights
the market’s current ATH dilution. As he points out, thousands of
new products are being launched daily, and “low float/high FDV VC
coins are launching in the billions.” These launches are seemingly
outpacing the new liquidity, resulting in Altcoins struggling with
performance. More Room To Catch Up The analyst’s third point
explains that the bull run has been led by Bitcoin and spot BTC
exchange-traded funds (ETH). Based on this, he considers it
unsurprising that altcoins have “hardly pumped” so far. Various
crypto analysts and experts share this opinion. Alex Krüger
previously stated that the cycle has been “almost entirely” driven
by the Bitcoin ETFs’ momentum. Deutscher sees Altcoins’
underperformance as a bullish signal since Bitcoin’s dominance has
been instrumental in previous cycles. To him, this performance
allows “more room to play catch up” and could drive altcoins to
unseen highs. Related Reading: Is Solana Preparing For Liftoff Or
Meltdown? Analysts Forecast SOL’s Future The analyst believes the
market needs another catalyst for a true Altcoins season. Despite
this, he highlights that many investors have had a record Q1 “even
in mildly bullish conditions for most alts.” Ultimately, Deutscher
considers there is still room to make big profits this cycle “even
without the face-melting altseason we all crave.” Featured Image
from Unsplash.com, Chart from TradingView.com
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