Altcoins
Main Reasons Behind Altcoin’s Recent Flash Crash
Analyst Connor Kenny finally answered the question that was on everyone’s mind: why did altcoins fall so sharply in this market? What is happening with Bitcoin and is there still an opportunity to capitalize on?
He explained that Bitcoin recently reached its lower support level, which is crucial to maintain a bullish outlook. He said that while he seemed overly optimistic to some, he anticipated a bearish scenario that would take Bitcoin back to $60,000.
Altcoin market analysis
For what altcoin dumping and will the bloodbath repeat itself again? Here are some reasons given by the analyst:
Lack of story: In the first quarter, meme coins exploded due to pre-sale hype. Although the meme pieces are still active, the dynamics are not as strong. In the second quarter, real world asset (RWA) coins surged due to BlackRock’s entry into the RWA space. At present, there is no strong case for new liquidity entering the market.
Cryptocurrency search trends: Over the past five years, interest in crypto has declined significantly. Current search volume is very low, indicating that retail investors are largely absent. This absence of new retail investors, while seemingly negative, can be seen as positive as major assets like Bitcoin and Solana still hold significant value.
Ethereum trading delay: There was a delay in Ethereum trading, causing short-term memory loss in the crypto community. This delay could last another three weeks, but altcoins should recover once Ethereum moves.
Greed in the market: There is excessive greed among many celebrities who launch their own coins and promote their large profits. The market showed many signs of greed, such as screenshots of profits and losses from retail investors touting millions of dollars. earnings thanks to meme coins.
He pointed out that although the current market scenario is difficult and painful, there are still strategies to deal with it, either by staying strong or trading strategically based on market sentiments.
Read also: Top Analysts Predict Final Crypto Capitulation Before Major Recovery, Comparing 2024 to 2016