Altcoins
Only 8 Altcoins have surpassed ATH against Bitcoin since FTX collapsed
During this bull cycle, the cryptocurrency market has been riding high on Bitcoin and enjoying the bullish momentum. However, investors are hoping for a seismic explosion that pushes altcoins to new highs.
While the cryptocurrency industry waits, online reports have revealed that since the fall of FTX, only eight altcoins have reached a new all-time high (ATH) against Bitcoin. A crypto analyst shared his thoughts on the matter.
Altcoins have underperformed Bitcoin this cycle
Crypto analyst Miles Deutscher on Friday shared an interesting fact about the cryptocurrency market. Since November 2022, only eight altcoins have surpassed their previous record against the flagship cryptocurrency.
To achieve this, tokens include Render (RNDR), Tellor (TRB), Injective (INJ), Astar (ASTR), SSV Network (SSV), SingularityNET (AGIX), True Wallet Token (TWT), and Binance Coin (BNB ).
It is worth noting that RNDR was the latest to achieve this on March 11, and that the list only contains altcoins launched before the FTX collapse.
Deutscher explained that despite the initial shock, the news made sense to him and highlighted some insights based on the uniqueness of this race.
First, the analyst believes that asset selection dynamics have changed compared to previous cycles. Investors were “punished” for being overexposed to some sectors such as L2 and gaming and “rewarded” for participating in others such as Memecoin and artificial intelligence.
In contrast, in the latest cycle, “you could pretty much bet on anything and beat $BTC.” According to the analyst, the market will likely continue to see sector outperformance despite the retail liquidity injection.
He also explained that “cryptocurrencies are an attention economy” and money will flow where the attention is. As a result, even designs with the best technology won’t work if there isn’t a compelling reason to buy them.
Deutscher’s second conclusion highlights the market’s current ATH dilution. As he points out, thousands of new products are launched every day and “low-float/high-FDV VC coins are launched by the billions.” These launches are apparently outpacing new liquidity, resulting in Altcoins struggling with performance.
More room to catch up
The analyst’s third point explains that the bull run was led by Bitcoin and BTC spot exchange traded funds (ETH). Based on this, he doesn’t think it’s surprising that altcoins have had “little pumping” so far.
Various cryptocurrency analysts and experts share this opinion. Alex Krüger previously declared that the cycle was “almost entirely” driven by the momentum of Bitcoin ETFs.
Deutscher sees the underperformance of Altcoins as a bullish sign as Bitcoin’s dominance has been instrumental in previous cycles. For him, this performance offers “more room to recover” and could take altcoins to unprecedented highs.
The analyst believes that the market needs another catalyst for a true Altcoin season. Despite this, he points out that many investors reported a record first quarter “even in slightly bullish conditions for most alternatives.”
Ultimately, Deutscher believes there is still room to make big profits this cycle “even without the earth-shattering altseason we all crave.”
Featured image from Unsplash.com, chart from TradingView.com