Market sentiment shifts towards altcoins
Bitcoin still has enormous potential
Market sentiment shifts towards altcoins
According to Cointelegraph, prominent cryptocurrency trader Dyme tweeted on December 27th on X (formerly known as Twitter):
“At this stage, altcoins offer a more favorable risk/reward (R/R) ratio compared to Bitcoin. Dollar-cost averaging (DCA) Bitcoin is no longer suitable within the next 1.5 years.”
According to a survey released by Kraken on October 7th, about 83.5% of cryptocurrency investors have used dollar-cost averaging (DCA) strategy, and 59% of investors still consider it as their primary way to buy cryptocurrencies. However, Dyme’s suggestion is only for investors who have not entered the market or plan to increase their holdings. For existing Bitcoin holders, Dyme advises to continue holding and ride the trend, provided that the market maintains its current trend.
Expert opinion: Altcoins may have their moment of glory
Tyler Durdan, CEO of Soap Capital, expressed a similar view in a tweet on X on December 26th, claiming that “the next wave of gains will be glorious.” Adam Cochran, partner at Cinneamhain Ventures, also believes that Bitcoin has little chance of becoming a strategic reserve asset in the United States, which means that it will be difficult for Bitcoin to outperform other assets in the market in the short term. He pointed out: “Other assets will benefit from regulatory clarity, new project launches, new ICO frenzy, etc., which will draw a significant amount of liquidity away from the Bitcoin market.”
Bitcoin still has enormous potential
However, some observers, including Kristin Smith, CEO of the Blockchain Association, argue that the momentum of Bitcoin is far from over, and there is still upside potential for new investors even at current price levels. In an interview with CNBC on December 26th, Kristin Smith predicted: “Bitcoin will reach $200,000 before it reaches $50,000.” This means that Bitcoin will rise by about 108% from its current price. At the same time, Kristin Smith also added that the incoming Trump administration, along with a change in the attitude of senior US policymakers, and an increasing number of financial advisors starting to recommend Bitcoin investments to clients, will trigger a new wave of capital inflow into the Bitcoin market. “As more retail financial advisors recommend Bitcoin investments to their clients, we will see more capital flowing into Bitcoin.” “People are choosing to hold more Bitcoin, not less.”
Furthermore, cryptocurrency analyst Darkfost recently pointed out that $95,000 is a “region suitable for executing a dollar-cost averaging (DCA) strategy.”
