Altcoins

Main reasons behind the recent altcoin flash crash

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Analyst Connor Kenny has finally answered the question everyone is asking: why are altcoins dropping so sharply in this market? What’s happening with Bitcoin and is there still some opportunity to be exploited?

He explained that Bitcoin recently reached its lowest support level, which is crucial to hold for a bullish outlook. He said that despite appearing overly optimistic to some, he predicted a bearish scenario that would take Bitcoin to $60,000

Analysis of the Altcoin market

Why were altcoins dumped and will the bloodbath happen again? Here are some reasons brought to attention by the analyst:

Lack of narrative: In the first quarter, meme coins were pumping due to pre-sale hype. Although meme coins are still active, the momentum is not as strong. In the second quarter, Real-World Assets (RWA) coins surged due to BlackRock’s entry into the RWA space. There is currently no strong narrative driving new liquidity into the market.

Cryptographic research trends: Over the past five years, interest in cryptocurrencies has declined significantly. The 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 a positive because major assets such as Bitcoin and Solana still retain significant value.

Delay in Ethereum trading: There has been a delay in Ethereum trading, causing a short-term memory leak in the crypto community. This delay could last another three weeks, but altcoins are expected to recover once Ethereum moves.

Greed in the market: There is excessive greed and many celebrities launch their own meme coins and promote their significant profits. The market has shown numerous signs of greed, such as screenshots of profits and losses from retail investors boasting millions of dollars in earnings from meme coins.

He emphasized that although the current market scenario is challenging and painful, there are still strategies to deal with it, either by maintaining a strong position or by strategically trading based on market sentiments.

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