Altcoins
Only 8 Altcoins Have Broken ATH vs Bitcoin Since FTX Crash
During this bull cycle, the crypto market rode the Bitcoin crest and benefited from the bullish momentum. However, investors are hoping that a seismic explosion will propel Altcoins to new highs.
As the crypto industry waits, online reports have revealed that since FTX’s fall, only eight altcoins have reached a new all-time high (ATH) against Bitcoin. A crypto analyst has shared his thoughts on the matter.
Altcoins underperforming Bitcoin this cycle
Crypto analyst Miles Deutscher on Friday sharing an interesting fact about the crypto market. Since November 2022, only eight altcoins have surpassed their previous ATH against the flagship 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 worth noting that RNDR was the last to achieve this on March 11 and the list only contains altcoins launched before the collapse of FTX.
Deutscher explained that despite his initial shock, the news made sense to him and highlighted some takeaways based on the idiosyncrasies of this race.
First, the analyst considers that the dynamic of asset selection has changed compared to previous cycles. Investors were “punished” for being overexposed to certain sectors like L2 and gaming and “rewarded” for participating in others like Coins and AI.
In contrast, during the last cycle, “you could bet on anything and beat $BTC.” According to the analyst, the market will likely continue to see sector outperformance despite the retail liquidity injection.
He also explained that “crypto is an attention economy” and that money will flow where the attention is. As a result, even projects with the best technology won’t work if there isn’t a compelling reason to buy.
Deutscher’s second takeaway highlights the current dilution of the market’s ATH. As he points out, thousands of new products are launched daily and “low float, high FDV VC coins are launched by the billions.” These launches appear to exceed new liquidity, leading to performance difficulties for Altcoins.
More space to catch up
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 considers it unsurprising that altcoins have “barely gone up” so far.
Various analysts and crypto experts share this opinion. Alex Krüger previously declared that the cycle was “almost entirely” driven by Bitcoin ETF momentum.
Deutscher views the underperformance of Altcoins as a bullish signal since Bitcoin’s dominance has been instrumental in previous cycles. For him, this performance leaves “more room to catch up” and could lead altcoins to new heights.
Analyst Believes Market Needs Another Catalyst for Real Altcoins season. Despite this, he points out that many investors experienced a record first quarter “even in slightly bullish conditions for most alternatives.”
Ultimately, Deutscher believes it’s still possible to make big profits this cycle “even without the meltdown altseason we all dream of.”
Featured image from Unsplash.com, chart from TradingView.com