Altcoins
Here’s When Your Favorite Alts Will Recover
Analyst George aka Crypto Rus watched his latest analysis video and commented that the market is currently stuck in a rut. Bitcoin briefly jumped to $67,000, but quickly fell back to $65,500, hinting at some volatility. However, he said that despite these fluctuations, Bitcoin remains strong, most recently sitting at $72,000 just 10 days ago. However, the situation for altcoins is more worrying.
The analyst revealed that he checked his portfolio for the first time in weeks and noted significant declines in altcoins relative to Bitcoin. Bitcoin dominance has increased and lots of altcoins, including favorites like Solana, Avalanche, Polygon and Chainlink, are bleeding profusely. Even projects in the areas of AI and gaming are declining.
George advised against abandoning altcoins, but noted that now is not the ideal time to convert Bitcoin to altcoins. Historically, altcoin seasons occur at the end of a market cycle. He pointed out that during the previous cycle, altcoins only saw major gains at the end of 2021, even though Bitcoin had performed well.
For now, he thinks it’s a good time to convert dollar cost averaging (DCA) into strong altcoins, as many of them are expected to rally. However, he cautioned that converting Bitcoin to altcoins might not be wise at the moment, despite the potential for future gains in altcoins.
“Bitcoin fundamentals are strong and market declines should reverse”
Considering the recent Bitcoin halving event, the analyst predicts that Bitcoin will start showing upward movement after September. Factors such as possible rate cuts, the launch of Bitcoin Spot ETF, and the next elections could fuel this trend. Until then, Bitcoin’s dominance could continue to rise and altcoins could struggle.
He added that when you hold assets such as altcoins, unlike Bitcoin, their value can decrease significantly if Bitcoin’s dominance increases. This means that the overall value of your portfolio in terms of Bitcoin can drop, which is discouraging. The main reason to hold altcoins is to outperform Bitcoin, allowing you to add Bitcoin to your portfolio without additional expenses. People often turn to meme coins because they can generate substantial returns.
According to him, Bitcoin will eventually reach new highs, possibly hitting $70,000 or $73,000 soon. However, he sympathizes with those investing heavily in altcoins and meme coins, recognizing their current difficulties.