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Only risks remain for altcoins
Selling Bitcoin to bet on altcoins
Altcoins cannot outpace Bitcoin
According to cryptocurrency analysts, due to the weak narrative driving the cryptocurrency market, the “high risk, high reward theory” of altcoins may now only be high risk. Markus Thielen, Head of Research at 10x Research, told the media outlet Cointelegraph that despite market expectations of an altcoin bull market in 2024, retail investors’ participation remains quite low, with almost no new projects attracting the attention of non-native cryptocurrency traders.
Markus Thielen stated that previous altcoin bull markets had “clear characteristics” that attracted more funding, but this cycle is showing “financial stress,” as evidenced by the low total locked asset value and lack of risk investment. Markus Thielen added, “However, there are still people who believe that the altcoin season will occur in this bull market cycle.” Michael van de Poppe, Founder of MN Trading Consultancy, tweeted on May 16 that he recently sold all his Bitcoin to invest in altcoins, claiming that he “could lose 50-80%.” Michael van de Poppe stated that a portfolio heavily invested in altcoins could bring “relatively large” risks.
Meanwhile, cryptocurrency investor Fabio Andreatta remains skeptical about the possibility of an “altcoin season.” Andreatta responded to van de Poppe’s tweet, saying:
According to TradingView data, Bitcoin’s dominance is nearing its yearly high at 55.88%, with a roughly 2% increase over the past seven days.
