Altcoins
Identifying the next big altcoin in this market cycle
Cryptocurrency analyst Scott Melker recently sat down with Dan Tapiero, founder of 1Roundtable Partners, and the duo opened up about the current state of the market. Melker asked Dan if a Federal Reserve interest rate drop from 5% to 3% could significantly boost the price of Bitcoin, perhaps pushing it above $100,000.
Melker said that Without the ETFs, Bitcoin might have traded between $35,000 and $45,000, but the ETF pushed it higher, creating the impression that the entire market would follow, which has not happened for altcoins.
Reacting to his statement, Dan said that the inflow of money from ETFs is substantial and continuous, bringing $100 trillion worth of assets into the market. This makes it easier to invest a large amount of capital in Bitcoin, accelerating its adoption. This new accessibility means there are now more buyers ready to support Bitcoin at various price levels, helping its growth.
Dan said an Ethereum ETF could shift interest toward decentralized finance (DeFi) and potentially spark a new altcoin season, although it may look different than past cycles. Some projects may not recover or perform as well as they did before. Ethereum’s success is important to drive excitement and investment in the broader crypto ecosystem.
Melker went on to say that the next big token in the market cycle is likely to be something new rather than existing known coins. The market tends to favor new, exciting projects, which often see dramatic price increases and drops.
Bitcoin and Ethereum are considered to be major assets, while many other cryptocurrencies are more like venture capital projects. Some projects, especially those that rank around the 30th or 40th place in terms of market capitalization, may be overvalued or even dead, but they continue to be traded and retain value.
Dan said: “I don’t know, the alt season isn’t the end of everything. I think Bitcoin and ETH are really the only fundamental assets in the space. Solana is moving this way, but other cryptocurrencies are amazing how much value they have.”