A seasoned crypto trader is predicting that the current Bitcoin (BTC) boom won’t translate into a big windfall for altcoins like it has in past cycles. Here’s why.
Big Players, Big Bitcoin, Little Altcoin Love?
According to a popular crypto analyst with a huge social media following, the reason is simple: the money fueling Bitcoin’s rise isn’t the same money that typically fuels altcoin rallies. They point to major players like MicroStrategy and investors pouring money into Bitcoin ETFs as key drivers of the current BTC surge. These investors, the analyst argues, are unlikely to shift their profits into the altcoin market. They’re holding onto Bitcoin, not looking to diversify into other cryptos.
The analyst explains that the market structure has changed. “The money that’s moving Bitcoin is in different places now – ETFs and institutional investors. Most people thought this money would flow into altcoins, but it’s not happening.”
Too Many Coins, Not Enough Money?
Another reason cited for the lack of an altcoin boom is the sheer number of cryptocurrencies available. With far more digital assets than in previous cycles, there simply isn’t enough money to go around to boost them all. The analyst suggests that any gains in altcoins will be concentrated in a few, while many others will struggle.
Bitcoin Dominance and a Potential Breakout
The analyst tracks Bitcoin dominance (BTC.D), a metric showing Bitcoin’s share of the overall crypto market cap. Currently, Bitcoin’s dominance is high, indicating altcoins aren’t outperforming.
Interestingly, the analyst did mention one altcoin, dogwifhat (WIF), as a potential breakout candidate after a recent price drop. They suggest it might be worth watching.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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