Altcoin Boom May Be Over: Crypto Experts Cautious amidst Weak Market Narratives
Summary:
Crypto experts suggest that the era of massive returns from altcoins might be over as weak narratives drive the cryptocurrency market. Despite anticipations of an altcoin surge this year, low retail engagement and lack of enticing new projects may limit returns. Experts caution that holding primarily altcoins may increase market risk significantly. Bitcoin's market dominance is on the rise, showing a broader market shift away from altcoins.
Crypto experts suggest that the rapid and substantial returns previously seen from altcoins could be a thing of the past, as the cryptocurrency market's driving narratives lack strength. Markus Thielen, 10xResearch's leading researcher, stated to Cointelegraph that although particular tactical opportunities exist, the days of 100x returns might be over. He emphasized that despite predictions of a majory altcoin gain in the market this year, retail involvement remains low, with few new enticing projects for non-crypto-savvy traders. According to Thielen, previous robust altcoin markets drew in massive investments, while the current cycle witnesses restricted capital and minimal venture capital investments. He also noted that the narrative of cryptocurrency replacing traditional finance systems, popular in the previous cycle, is no longer significantly embraced. This week, the GameStop-based memecoin, unassociated with the game retailer, shot up by 2,727%, paralleling GameStop's stock price surge after trader Keith Gill uploaded a meme from his "Roaring Kitty" account after nearly a three-year hiatus. Michael van de Poppe, a trading consultancy founder, warned in a post on May 16 that holding mainly altcoins bears considerable risk. Nonetheless, he divulged that he recently traded all his Bitcoin for altcoins, admitting a potential 50-80% loss. Meanwhile, crypto investor Fabio Andreatta expressed doubt regarding a potential "altseason". Responding to van de Poppe's post, he stated, "All you did is increase your risk. You are very unlikely to outperform Bitcoin. Most altcoins will never reach their ATHs ever again." Observations show a shift of the broader market's capital away from altcoins, with Bitcoin's market dominance nearing a year-to-date high at 56.05%, a 2.12% increase within the last week. Magazine Charles Edwards warns to sell altcoins before 'mid-2025'. This news does not provide investment advice or recommendations. Investments and trading moves entail risk, demanding independent research by the reader before decision-making.
Published At
5/17/2024 5:27:09 AM
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