During this bull cycle, the cryptocurrency market has been surfing the top of Bitcoin and enjoying the upward momentum. However, investors are hoping for a seismic explosion to push altcoins to new highs.
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While the cryptocurrency industry waits, online reports have revealed that since the fall of FTX, only eight altcoins have reached a new all-time high (ATH) against Bitcoin. One cryptocurrency analyst shared his thoughts on the matter.
Altcoins have performed poorly against Bitcoin this cycle
On Friday, cryptocurrency analyst Miles Deutscher said subscriber Interesting fact about the crypto market. Since November 2022, only eight altcoins have managed to break the previous ATH price against the main 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 should be noted that RNDR was the last to achieve this on March 11 and the list only contains altcoins that were launched before the FTX crash.
Deutscher explained that despite his initial shock, the news made sense to him and highlighted some takeaways based on the specifics of this tour.
First, the analyst believes that the dynamics of asset selection have changed from previous cycles. Investors have been “penalized” for overexposure to certain sectors such as L2 and gaming and “rewarded” for involvement in other sectors such as Memecoins and AI.
In contrast, in the last cycle, “you could basically bet on anything and win $BTC.” According to the analyst, the market is likely to continue to outperform a particular sector despite the retail liquidity injection.
He also explained that “crypto is an attention economy,” and money will flow where there is interest. As a result, even projects with the best technology will not achieve success if there is no exciting reason to buy.
Deutscher's second takeaway highlights the current ATH dilution in the market. As he points out, thousands of new products are launched daily, and “low/high float FDV VCs are being launched in the billions.” These launches appear to outpace new liquidity, causing altcoins to suffer in performance.
More room to catch up
The analyst's third point shows that the uptrend was led by Bitcoin and BTC exchange-traded funds (ETH). Accordingly, he considers it unsurprising that altcoins have “barely” been pumped in so far.
Many cryptocurrency analysts and experts share this opinion. Alex Krüger previously stated that the cycle was driven “almost entirely” by the momentum of Bitcoin ETFs.
Deutscher sees the weak performance of altcoins as a bullish signal given that Bitcoin's dominance has been beneficial in previous sessions. For him, this performance allows “more room to play catch-up” and could push altcoins to unseen highs.
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The analyst believes that the market needs another catalyst for the real Altcoins season. Despite this, he highlights that many investors had a record high Q1 “even under moderately bullish conditions for most altcoins.”
Ultimately, Deutscher believes there is still room for significant profits in this cycle “even without the face-melting alternate season we all crave.”
Featured image from Unsplash.com, chart from TradingView.com
