As 2024 draws to a close, Bitcoin's market share is gradually recovering to nearly 60%, but prices are also stagnating. Many traders are starting to believe it's time to shift investment strategies from accumulating Bitcoin to altcoins.
Market sentiment is shifting towards altcoins.
According to a report by Cointelegraph, well-known cryptocurrency trader Dyme posted on X (formerly Twitter) on December 27, stating:
"At this stage, altcoins offer a more ideal risk/reward (R/R) ratio compared to Bitcoin. The time for Dollar-Cost Averaging (DCA) Bitcoin has passed, and it is not suitable for this operation in the next 1.5 years."
According to a survey released by Kraken on October 7, about 83.5% of cryptocurrency investors have used a Dollar-Cost Averaging (DCA) strategy, and 59% of investors still consider it their primary method of purchasing cryptocurrencies. However, Dyme's advice is only for investors who have not yet entered the market or intend to increase their positions. For existing Bitcoin holders, Dyme suggests continuing to hold and ride the trend, provided that the market maintains its current trend.
Expert Opinion: Altcoins may be迎來 a glorious moment.
Tyler Durdan, CEO of Soap Capital, also expressed a similar view in a tweet on X on December 26, claiming that "the next wave of growth will be glorious." Cinneamhain Ventures partner Adam Cochran also believes that the chances of Bitcoin becoming a strategic reserve asset for the United States are slim, meaning that it will be difficult for Bitcoin to outperform other market assets in the short term. He pointed out:
"Other assets will benefit from regulatory clarity, new project launches, new ICO booms, etc., which will siphon off a lot of liquidity from the Bitcoin market."
If you don’t get a Bitcoin Strategic Reserve (which is low odds with current congress) it’s hard to see what catalyst makes Bitcoin outperform here. Other assets will benefit from regulatory clarity, new launches, new ICO eras, etc., and that will suck a lot of liquidity out of the…
— Adam Cochran (adamscochran.eth) (@adamscochran) December 27, 2024
Bitcoin's potential remains immense.
However, some observers, including Blockchain Association CEO Kristin Smith, have stated that the momentum for Bitcoin is far from over. Even at the current price levels, there is still upward potential for new investors. In an interview with CNBC on December 26, Kristin Smith predicted:
"Bitcoin will reach $200,000 before it hits $50,000." This means that Bitcoin is expected to rise approximately 108% from its current price. Meanwhile, Kristin Smith also added that the incoming Trump administration, coupled with a shift in attitudes from U.S. high-level policies, and more and more financial advisors beginning to recommend Bitcoin investments to their clients, will trigger a new wave of capital inflow into the Bitcoin market.
"As more and more retail financial advisors suggest investing in Bitcoin to their clients, we will see more capital flowing into Bitcoin." "People are now choosing to hold more Bitcoin, not less."
Additionally, cryptocurrency analyst Darkfost recently pointed out that $95,000 is a "suitable area to implement a Dollar-Cost Averaging (DCA) strategy."
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