News
Only 8 Altcoins Have Broken ATH Against Bitcoin Since FTX Collapse – Analyst Weighs – TradingView News
During this bull cycle, the crypto market has been riding Bitcoin’s crest and taking advantage of the bullish momentum. However, investors are hoping that a seismic explosion will propel Altcoins to new highs.
While the crypto industry waits, online reports have revealed that since the FTX crash, only eight altcoins have reached a new all-time high (ATH) relative to 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 about the crypto market. As of November 2021, only eight altcoins have broken their previous ATH against the leading 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 is important to note that RNDR was the last to achieve this on March 11 and that the list only contains altcoins launched before the FTX collapse.
NewsBTC
Deutscher explained that, despite the initial shock, the news made sense to him and highlighted some conclusions based on the singularities of this race.
First, the analyst considers that the asset selection dynamics have changed in relation to previous cycles. Investors were “punished” for being overexposed to certain sectors like L2 and gaming and “rewarded” for participating in others like Memecoins and AI.
In contrast, in the last cycle, “you could basically bet on anything and beat $BTC.” According to the analyst, the market will probably continue to register superior performance in certain sectors, despite the injection of liquidity into retail.
He also explained that “crypto is an attention economy” and money will flow wherever the attention is. As a result, even the best technology designs won’t work if there isn’t a compelling reason to buy.
Deutscher’s second conclusion highlights the current dilution of the market’s ATH. As he points out, thousands of new products are being launched daily, and “low float/high FDV VC coins are being launched in the billions.” These launches are apparently outpacing new liquidity, resulting in Altcoins struggling to perform.
More space to update
The analyst’s third point explains that the bull run was led by Bitcoin and BTC spot exchange-traded funds (ETH). Based on this, he finds it unsurprising that altcoins have “barely pumped” so far.
Several crypto analysts and experts share this opinion. Alex Krüger previously stated that the cycle was “almost entirely” driven by the momentum of Bitcoin ETFs.
Deutscher sees the underperformance of Altcoins as a bullish sign, as Bitcoin’s dominance has been key in previous cycles. For him, this performance allows “more room to catch up” and could take altcoins to unprecedented levels.
The analyst believes the market needs another catalyst for a true Altcoin season. Despite this, he highlights that many investors had a record first quarter “even in moderately bullish conditions for most alts.”
Ultimately, Deutscher believes there is still room to make big profits this cycle, “even without the peak season we all want.”
Fuente
