Crypto analyst Jamie Coutts believes that altcoins, those cryptocurrencies other than Bitcoin, could be on the verge of another massive rally, similar to the explosive growth seen in 2020 and 2021.
Signs Point to Altcoin Growth
Coutts points to several factors that suggest an altcoin boom is on the horizon:
- Bitcoin Outperformance: Bitcoin has been outperforming the rest of the crypto market, a pattern similar to late 2020, which preceded a massive altcoin rally.
- Rising Global Liquidity: Global liquidity, a measure of available cash in the economy, is starting to increase, which could fuel further growth in the crypto market.
The Altcoin Rally Recipe
Coutts outlines the typical ingredients for a broad altcoin rally:
- Oversold and Undervalued:
Altcoins are currently undervalued and have been underperforming.
- Increased Global Liquidity: The availability of more cash in the economy can drive investment into cryptocurrencies.
- Bitcoin’s Strong Performance: Bitcoin’s strong performance can encourage investors to move their profits into altcoins.
- Supercharged Growth: This influx of investment can then supercharge the growth of already outperforming altcoins.
High-Quality Altcoins to Watch
Coutts emphasizes that while a broad altcoin rally is possible, investors should focus on “high-quality” layer-1 (L1) blockchains that offer innovative and useful applications. These are the altcoins that are likely to outperform the rest of the market.
Disclaimer: This information is for general knowledge and should not be considered investment advice. Always do your own research before investing in cryptocurrencies. /p>
