Published on mei 18, 2024, 12:39 am
Image source: Fox News
```json [ { "TLDR": "Altcoins are presenting tactical investment opportunities with lower gains than previous cycles, indicating a shift to higher risk levels. While expectations exist for an altcoin bull run in 2024, current market conditions show subdued retail involvement and lack of new projects attracting non-crypto-native traders. Tighter capital flow is evident with minimal venture investments. Experts caution against excessive focus on altcoins due to increased risks, highlighting Bitcoin's dominance in the market trending upwards." } ] ```
Altcoins are experiencing what some experts describe as “tactical opportunities” but not the significant gains witnessed in previous cycles, according to Markus Thielen, the head of research at 10xResearch.
The current landscape suggests that the high-risk, high-reward nature of altcoins is shifting towards higher risk levels as substantial gains become less probable due to weak narratives influencing the cryptocurrency market. Thielen noted that while there are tactical openings for investment, the era of extraordinary returns like 100x may be a thing of the past.
Despite market expectations of an upcoming altcoin bull run in 2024, retail involvement remains subdued, and there is a lack of new projects attracting non-crypto-native traders. This cycle differs from past ones as it exhibits tighter capital flow, indicated by low total value locked and minimal venture capital investments.
Thielen highlighted that previous altcoin bull markets had unique traits that attracted more capital. However, the current cycle features shorter-lived narratives with inadequate support. An instance earlier this week was GameStop (GME), a Solana-based memecoin unrelated to the retail giant, witnessing a massive 2,727% surge coinciding with GameStop’s stock price increase after Keith Gill posted a meme on his “Roaring Kitty” X account after three years.
Notably, Michael van de Poppe from MN trading consultancy expressed concerns over holding primarily altcoins due to the increased risk involved. While he shifted his portfolio away from Bitcoin (BTC) towards altcoins with a willingness to endure losses ranging from 50-80%, crypto investor Fabio Andreatta voiced skepticism regarding the likelihood of an ‘altseason.’
Andreatta cautioned against solely focusing on altcoins by emphasizing that such strategies heighten risks and are unlikely to surpass Bitcoin’s performance. He believes most altcoins will never reclaim their all-time highs.
Moreover, Bitcoin’s dominance in the crypto market relative to altcoins has been on an uptrend, currently nearing its year-to-date peak at 56.05%. This shift indicates a capital movement away from altcoins towards Bitcoin.
As Charles Edwards advises readers to consider buying altcoins now but selling before mid-2025, it is essential to remember that this article does not provide investment advice or recommendations. Every financial decision carries inherent risks; hence, readers should conduct thorough research before making any investment moves.
Original article posted by Fox News
