Altcoins
Is Altcoin Season “a myth”? Researcher explains why ‘the days of easy mode are over’
May 10, 2024 1:32 p.m. | 3 minutes of reading
Cryptography researcher Distilled Crypto questioned the notion of “Altcoin season” and explored the factors contributing to the gloom altcoin performance despite Bitcoin (CRYPTO: BTC) solid performance.
What happened: Distilled Crypto notes that even though Bitcoin has reached $60,000, sentiment remains dire and the predicted altcoin season for 2021 has yet to materialize. It delves deeper into the main differences of this cycle, highlighting Ethereum (CRYPTO: ETH) the lag and premature rise of other altcoin sectors. “Even if certain sectors excel, there is no generalized increase,” observes the trader.
Accessibility to Bitcoin has improved significantly, with traditional ETFs and brokers providing exposure without the need for complex portfolio management. He argues that lack of awareness is not the main problem hindering the growth of the altcoin. “Bitcoin has been around for over 15 years and has gone through many cycles,” he notes. “Its financial history, while solid, no longer attracts attention.”
Instead, distilled crypto attributes The altcoin market is struggling with a supply and demand problem, stating: “The market lacks sufficient liquidity and retail interest. The demand for altcoins is very low, but there is an abundance of choice. » The rapid rise of altcoins has diluted an already saturated market, making a widespread altcoin boom exceptionally difficult.
Despite these challenges, Distilled Crypto believes that altcoins are not a lost cause but emphasizes that the situation has changed. “The days of ‘easy mode’ are over,” he says. “If you fail to get your attention, you may find yourself destroyed.”
For those who are not inclined to trade, Distilled Crypto suggests focusing on thorough research and selecting multi-cycle winners in institutionalized sectors and next-generation primitives.
Read also: With Altcoins at First-Ever ‘Weekly Gold Cross,’ This Prominent Trader Remains ‘Heavily Allocated’
Why is this important: Looking ahead, Distilled Crypto predicts that focus and liquidity will continue to dominate the market in the near term. However, as regulations tighten and the altcoin market becomes oversaturated, a fundamentals-driven strategy may prevail. “Just be prepared: it might take longer than expected,” warns the researcher.
Distilled Crypto’s analysis echoes the sentiments of another crypto researcher, Gideon, who warned earlier in May 2024 that retail investors were unlikely to be behind the ongoing bull run. He stressed that Bitcoin is broken new all-time highs thanks to the purchasing power of ETFsand not individual investors, and that individual interest and savings are currently low.
And after: The influence of Bitcoin as an institutional asset class should be explored in depth in the next The future of digital assets event on November 19.
Read next: Is it time for Altcoins to shine? Expert predicts rise for DOGE as BTC finds solid ground
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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