During this bull cycle, the crypto market has been browsing off Bitcoin’s crest and having fun with the bullish momentum. Nevertheless, investors hope for a seismic explosion to impulse Altcoins to recent highs.
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Because the crypto industry awaits, online reports revealed that, since FTX’s fall, only eight altcoins have hit a recent all-time high (ATH) against Bitcoin. A crypto analyst shared his thoughts on the matter.
Altcoins Underperforming Against Bitcoin This Cycle
On Friday, Crypto analyst Miles Deutscher shared an interesting fact concerning the crypto market. Since November 2022, just eight altcoins have broken their previous ATH against the flagship cryptocurrency.
To realize 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’s value noting that RNDR was the newest one to perform this on March 11 and that the list only comprises altcoins launched before FTX’s collapse.
Original post lists the altcoins to hit ATH against BTC. Source: Miles Deutscher on X
Deutscher explained that despite his initial shock, the news made sense to him and highlighted some takeaways based on the singularities of this run.
First, the analyst considers that asset selection dynamics modified from previous cycles. Investors have been “punished” for being overexposed to certain sectors like L2 and gaming and “rewarded” for participating in others like Memecoins and AI.
In contrast, within the last cycle, “you may mainly bet on anything and beat $BTC.” In response to the analyst, the market will likely proceed experiencing specific sector outperformance despite the retail liquidity injection.
He also explained that “crypto is an attention economy,” and money will flow where attention is. In consequence, even the projects with the perfect technology won’t perform if there isn’t an exciting reason to purchase.
Deutscher’s second takeaway highlights the market’s current ATH dilution. As he points out, 1000’s of latest products are being launched every day, and “low float/high FDV VC coins are launching within the billions.” These launches are seemingly outpacing the brand new liquidity, leading to Altcoins scuffling with performance.
More Room To Catch Up
The analyst’s third point explains that the bull run has been led by Bitcoin and spot BTC exchange-traded funds (ETH). Based on this, he considers it unsurprising that altcoins have “hardly pumped” to date.
Various crypto analysts and experts share this opinion. Alex Krüger previously stated that the cycle has been “almost entirely” driven by the Bitcoin ETFs’ momentum.
Deutscher sees Altcoins’ underperformance as a bullish signal since Bitcoin’s dominance has been instrumental in previous cycles. To him, this performance allows “more room to play catch up” and will drive altcoins to unseen highs.
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The analyst believes the market needs one other catalyst for a real Altcoins season. Despite this, he highlights that many investors have had a record Q1 “even in mildly bullish conditions for many alts.”
Ultimately, Deutscher considers there remains to be room to make big profits this cycle “even without the face-melting altseason all of us crave.”
Altcoins’ market capitalization is at $1.13 trillion, in line with the weekly chart. Source: TOTAL 2 on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com