Expert Predicts 98% of Altcoins Peaked in Current Cycle

In the rapidly evolving world of cryptocurrencies, Andrew Kang, the founder of Mechanism Capital, points out a surprising perspective on the prospects for altcoins. According to Kang, over 98% of altcoins have probably already peaked in this cycle, with only a few likely to hit new highs in Q4 2024 or Q1 2025.

Interestingly, he noted that meme coins have a strong chance of being among the select few to reach new highs, albeit within a highly competitive and saturated market.

Kang highlighted a critical misstep often observed among cryptocurrency investors: buying too soon after a market trend has shifted down. He noted that corrections that follow significant breakdowns in market structure tend to be deeper and more prolonged than most people expect.

It’s not enough for a few to turn bearish, with prices only 10% below Bitcoin’s highs; it takes significant selling pressure and a widespread market exit for prices to decline significantly. Kang advised that the optimal time to invest for the next cycle is when there is widespread liquidation, the market experiences a mass exodus, and there is a pervasive sentiment that calls into question the very future of cryptocurrencies.

The Evolution of Bitcoin and the Fate of Altcoins

A comment from one observer, Buhlaque, suggested that Kang’s insights implied that the current cycle was essentially over, making it pointless to buy any time soon. Kang’s response largely confirmed this sentiment, reiterating his belief that most altcoins have already peaked for this cycle.

However, he remained cautiously optimistic about a handful of coins that could reverse the trend in the near future. He also shared his views on Bitcoin, suggesting it is transitioning into a “supercyclical” asset. This transformation sees Bitcoin retaining the characteristics of previous cycles while increasingly behaving like a mature macro asset.

When asked about meme coins, Kang highlighted their great potential. In contrast to the significant number of meme coins, hundreds of thousands are in circulation, he added that being successful in this area requires extreme selectivity. This was part of their investment philosophy, where timing and careful selection are key to overcoming the unpredictable and volatile cryptocurrency market.

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