Are you still waiting for the carnival of altcoins? Before Bitcoin has its "crazy fight", the altcoin market can only continue to "jump up and down"! This is the latest prediction given by Pav Hundal, chief analyst of Swyftx. It makes people wonder: When will Bitcoin give us a happy signal so that altcoins can also run wild?
Hundal told Cointelegraph at Aus Crypto Con 2024 that everyone is now eagerly waiting for Bitcoin's "crazy rush" before seeing the rotation of funds. Before that, altcoins may have to swing back and forth between big rises and big falls, just like riding a roller coaster.
"You may see them (altcoins) rise 20%, 30%, 40% in one day, but they may fall back to the same level the next day," Hundal said helplessly.
Take a look at the recent example, Solana surged 13% in 24 hours on November 21, only to fall back nearly 13% in the next five days. Even the popular altcoins with the largest market capitalization are no exception, such as Pepe, which soared about 93.2% in 24 hours after Coinbase and Robinhood announced its launch, but it pulled back nearly 22% the next day.
Are you also wondering if Pepe can have an "800% crazy day" like Doge before? Hundal said that this is not impossible, but you need money to flow in. Moreover, this situation is more likely to occur when Bitcoin's dominance declines.
This is a key metric when it comes to Bitcoin’s dominance, and Hundal predicts that Bitcoin’s market share could rise to 65% to 67%, or even as high as 70%, before it starts to decline.
“For me, I’m not trying to predict when Bitcoin’s market share will peak and therefore when the altcoin market will fall,” Hundal explained.
But don’t forget that the market is always full of variables. An anonymous trader named Mikybull Crypto posted on November 28 that the “violent decline” of Bitcoin’s market share will begin next month.
However, CryptoQuant CEO Ki Young Ju recently poured cold water on his more than 370,000 followers, saying that this altcoin season will not be like previous cycles because the current Bitcoin rally is mainly driven by institutional investors who are not interested in speculative tokens.
“Unlike crypto exchange users, institutional investors and ETF buyers are not looking to move assets from Bitcoin to altcoins,” Ju said.
Therefore, if altcoins want to reach a new historical high in market value, a large amount of new funds must flow into crypto exchanges. The current market value of altcoins has not yet recovered to its previous historical high, which means that the new liquidity brought by new exchange users has decreased. The market is always full of surprises and variables. Maybe one day Bitcoin will give us a surprise, so that altcoins can also have a good carnival!
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The above content is for information sharing only and does not constitute any investment advice! Investment is risky, so be cautious when entering the market!
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