Supply and Demand Imbalance
A top crypto analyst explains the recent altcoin crash as a result of a supply and demand imbalance. With the rapid launch of new altcoins, demand was outpaced by supply, leading to a shift in momentum towards the bears.
TOTAL3’s Plunge
TOTAL3, an index tracking the value of altcoin markets, dropped by 30% from its peak, highlighting the severity of the correction.
Bull Market Still Intact
Despite the crash, the analyst believes the crypto bull market is still ongoing. He notes that the supply of altcoins has not yet reached an infinite level, indicating that there are still buyers in the market.
TOTAL3’s Recovery
The analyst suggests that TOTAL3 may find support at $600 billion and rally to $1 trillion. However, he cautions that this could change if Bitcoin loses market structure or there are significant outflows from exchange-traded funds.
Caution and Opportunity
The analyst advises caution but also sees the correction as an opportunity for potential gains. He notes that similar corrections have occurred in previous bull cycles.
