Altcoins

Bitcoin and Altcoins: Are There Two Crypto Bubbles?

Published

6 months ago

22 July, 2024

Bitcoin and Altcoins: Are There Two Crypto Bubbles?

As digital currencies have exploded, reaching a total value of over $700 billion this week alone, prominent voices have been heard on both sides of the coin. Investors have rushed into the market to take advantage of the rapid gains of Bitcoin, Ethereum, Ripple, and other virtual currencies, but at the same time, some of the biggest names in finance have bashed the cryptocurrency space, calling it a bubble or worse.

In a recent interview with Coin counterErik Voorhees, CEO of ShapeShift and a long-time proponent of digital currencies, admits that he believes the digital currency industry is susceptible to the bubble phenomenon. However, while there has been much talk in recent months about the digital currency bubble, he goes further than that; Voorhees suggests that there are actually two different bubbles forming at this point.

A Tale of Two Bubbles: Bitcoin and Altcoins

According to Voorhees, “Bitcoin is more relevant than ever, but along with it, a number of other digital assets have grown.” Among the most prominent of these other digital assets are the so-called altcoinsone of the many alternative digital currencies that are inspired in some way by Bitcoin and in most cases claim to be better than Bitcoin in some way.

Voorhees cites Ethereum, suggesting that ether “has had a much bigger run this year than bitcoin, and yet bitcoin has more transactions, more users, more market cap than it’s ever had before.”

On the one hand, this is all good news for the cryptocurrency industry. “I think it proves what I’ve been saying for a long time, which is that crypto assets are not mutually exclusive,” Voorhees said. “They don’t just grow by competing with each other. The whole industry grows by competing with traditional finance.”

On the other hand, and perhaps because “the average person simply holds it as a speculative “investment,” and because “no one, no company, and no group of people can control” the world of cryptocurrencies, Voorhees believes we are in a number of bubbles.

He’s seen bubble behavior “in altcoins since the rise of ethereum and in bitcoin this fall. Both are still in their bubble phase, and I don’t know how far the bubble will go or how far it will collapse. But they’re definitely in bubbles.”

Voorhees added: “I think bitcoin is going to trade lower than it is today in 2018. But I’ve seen a number of bubbles like this before. There will be more. And in the long run, if this thing takes over the world, the best strategy is to just buy it and hold it. But anybody who buys it thinking the price is going to go up immediately and they’re going to cash out and make a lot of money is probably going to suffer.”

Double bubble problem?

What could it mean if there were two bubbles instead of one larger digital currency bubble? Perhaps these bubbles would burst differently and at different times? It is notoriously difficult to predict the evolution of digital currencies, and it is not necessarily true that a Bitcoin bubble would burst at the same time as an altcoin bubble.

Investing in cryptocurrencies and others Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article does not constitute a recommendation by Investopedia or the author to invest in cryptocurrencies or other ICOs. As each individual’s situation is unique, a qualified professional should always be consulted before making any financial decision. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date of this writing, the author holds cryptocurrencies.

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Altcoins

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Published

6 months ago

29 July, 2024

CoinFlix Staff

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Popular crypto analyst Michael van de Poppe has highlighted his altcoin portfolio approach in light of the new Ethereum ETF. In a recent Youtube videoThe analyst explained the measures he would take for this major market event.

The Ethereum ETF was listed on the stock exchange and it took time to get approval and so far there has been no significant change in price. The analyst pointed out that the long-term effect could be quite significant, comparing it to the situation of the Bitcoin ETF where the initial decline was followed by large inflows.

According to Van de Poppe, the Ethereum ETF’s trading volume on the first day of trading was about 25% of the volume Bitcoin ETF He noted that the first day of trading was marked by low inflation, and said there was a net inflow of $150 million to $160 million, which reduced the available supply.

Altcoins are poised for growth

The analyst said that as Ethereum adoption increases in the future, the supply of Ethereum will decrease, which is a deflationary model. Ethereum is up about 15% since the ETF approval, the broader market reaction has yet to happen as several sell-offs have taken place, including the Grayscale Trust.

Van de Poppe also mentioned other important market events, including the end of Mount Gox The process of repaying creditors initially caused tensions in the markets, but had little effect subsequently. It also highlighted the role of macroeconomic factors, which can lead to Fed rate cuts, which can affect markets.

In this regard, looking at van de Poppe’s strategy, he is still keen to trade within the altcoins of the Ethereum ecosystem. He stated that there is a possibility of short-term price fluctuations that may discourage many people, but the long-term still looks good due to the improvement and adaptation that has been made to Ethereum and its environment.

According to the analyst, substantial inflows could propel Ethereum towards new historic highs with estimates ranging from $5,000 to $7,000. Despite the current market fluctuations, he is confident that macroeconomic changes and greater liquidity will be favorable for altcoins.

He explained that his broad approach to altcoins, especially those associated with Ethereum, will be beneficial because the market will react differently to these events. The basis for his optimism comes from the fact that he believes that Ethereum and all associated projects are still extremely undervalued and have the potential to skyrocket as sentiment changes.

Looking ahead and market adjustments regarding the Ethereum ETF and other macroeconomic factors, the analyst remains bullish on altcoins. He suggested investors stay informed and believe that in the ever-changing world of crypto, they will eventually be rewarded.

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Altcoins

Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

IntoTheBlock Releases Report on Institutional DeFi Trilemma

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Altcoins

Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

Disclaimer

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Altcoins

Epic Altcoin Rally Expected for August and September

Published

6 months ago

28 July, 2024

CoinFlix Staff

Crypto analyst predicts massive altcoin rally similar to Q1 2024, urging patience and accumulation.
Bitcoin’s potential as a reserve asset and its technical patterns suggest that it will drive the rise of the cryptocurrency market.

Captain Faibik, a renowned crypto analyst, has created excitement in the cryptocurrency sector with his latest prediction. He indicated that we are on the cusp of a massive altcoin rally, similar to the one we saw in Q1 2024.

We are on the verge of a massive Altcoin rally, similar to Q1 2024📈

Keep accumulating and hold with patience. (Patience will be rewarded)

The majority of #Altcoins have already hit rock bottom and are about to escape.

In my opinion, August-September is going to be epic for Altcoins.🚀🚀#Crypto pic.twitter.com/cMdHagiaYc

— Captain Faibik (@CryptoFaibik) July 24, 2024

Accumulating and Holding Altcoins: The Path to Potential Profits

He stressed the need to accumulate altcoins and hold them patiently, as it will eventually pay off. According to him, the majority of altcoins have already bottomed out and are about to break it. He believes August and September will be epic months for altcoins.

In a chart posted by Captain Faibik, the overall crypto market cap, excluding Bitcoin and Ether, known as TOTAL3, is approaching the upper boundary of a descending channel pattern.

This context suggests a potential breakout and a significant rally towards the $1 trillion mark. Technically, the decline since mid-March is interpreted as a corrective trend for the value of TOTAL3, signaling a preparation to enter a rally structure.

Bitcoin’s influence and legislative developments suggest good prospects for the future

Furthermore, based on sentiment and technical patterns, Bitcoin, the world’s leading cryptocurrency, appears poised to lead the charge in the cryptocurrency market. Bitcoin’s performance often sets the tone for the market as a whole, and a strong move in BTC could trigger a significant rally in altcoins.

Previously, as we have already said reportedSenator Cynthia Lummis said she plans to introduce a bill at the upcoming Bitcoin conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.

If this law passes, the US will treat BTC as a long-term investment rather than selling huge amounts infrequently, which could disrupt the market.

In addition, asset management firm VanEck has proposed a bold scenario in which Bitcoin Price Could Reach $2.9 Million Per BTC By 2050based on its fundamental outlook. Matthew Sigel, head of digital assets at VanEck, and senior investment analyst Patrick Bush noted that their estimate is based on Bitcoin’s adoption as a global medium of exchange and reserve asset.

As Bitcoin price increases, altcoins are expected to gain popularity, indicating the start of a bullish rally shortly after the BTC halving event.

Meanwhile, at the time of writing, the price of BTC was hovering around $67,007.99up 4.67% over the past 24 hours following a short-term correction.