Altcoins
Identifying the Next Big Altcoin of This Market Cycle
Cryptocurrency analyst Scott Melker recently had a conversation with Dan Tapiero, founder of 1Roundtable Partners, and the duo talked about the current state of the market. Melker asked Dan if a Federal Reserve interest rate cut from 5% to 3% could significantly boost the price of Bitcoin, possibly pushing it above $100,000.
Melker said that Without an ETF, Bitcoin could trade between $35,000 and $45,000, but the ETF has pushed it higher, creating the impression that the entire market should follow, which is not the case for altcoins.
Reacting to his statement, Dan said the inflow of money from ETFs is significant and ongoing, bringing assets worth $100 trillion to the market. This makes it easier to invest a large pool of capital into Bitcoin, thereby accelerating adoption. This newfound accessibility means that there are now more buyers willing to support Bitcoin at different price points, contributing to its growth.
Dan said an Ethereum ETF could shift interest to decentralized finance (DeFi) and potentially kick off a new altcoin season, although it might look different than previous cycles. Some projects might not recover or perform as they did before. Ethereum’s success is important to drive excitement and investment in the broader crypto ecosystem.
Melker went on to say that the next big token in the market cycle would likely be something new rather than existing well-known coins. The market tends to favor exciting new projects, whose prices often see dramatic rises and falls.
Bitcoin and Ethereum are considered core assets, while many other cryptocurrencies are more like venture capital projects. Some projects, especially those ranked around 30th or 40th in terms of market capitalization, may be overvalued or even defunct, but they continue to trade and hold their value.
Dan said: “I don’t know if, like alt season, it’s not the end. I think Bitcoin and ETH are really the only core assets in the space. Solana is kind of transitioning that way, but the other cryptocurrencies – it’s incredible the value they hold.