Recently, some analysts have put forward a rather striking viewpoint, suggesting that the grand conclusion of 'altcoin liquidation' is imminent. In their view, the collapse of the altcoin market is an inevitable process, and Bitcoin will significantly outperform altcoins in this liquidation. Let me reinterpret this from a personal perspective.
According to Cohen's analysis, the altcoin market is approaching an important turning point. From the chart, the TOTAL3/BTC currency pair is showing a price pattern similar to that of 2019. At that time, TOTAL3/BTC had fallen to a key support level, followed by a strong rebound. However, now, as the altcoin market gradually declines, the altcoin's 'last struggle' may end by December 2024, at the latest by the second week of January 2025. Although the whole process is long, it will eventually come to an end.
As someone who is keen on analyzing market trends, I can't help but strongly resonate with such statements. The altcoin market has long been overshadowed by Bitcoin. Bitcoin's dominant position in the cryptocurrency world has hardly been questioned, while most altcoins seek their market share among investors blindly chasing short-term profits. Data reveals a clear trend—many altcoins will face significant price declines, and this may gradually become apparent in the coming months, indicating that the value of low-market-cap altcoins relative to Bitcoin will experience substantial depreciation. For me, this particularly warns of the risks in the market. The variety of altcoins, especially projects that attract a large number of investors in a short time, such as memecoins, are often more susceptible to violent fluctuations in market sentiment.
Behind these memecoin projects are often marketers who only care about their own profits. They will aggressively promote a certain token during a short-term market surge, but when the market collapses, they won't care about the investors' losses. In fact, these marketers usually quickly shift to promoting new projects, while the investors who once followed them may have unknowingly fallen into significant losses.
Looking back at the performance of the altcoin market in recent years, I can't help but feel a bit of sigh. Many seemingly limitless projects are merely creating temporary hype, ultimately lacking real technological and market foundations. When the market declines, these projects are often the first to be abandoned by the market. In contrast, Bitcoin's status as the 'gold' of digital assets has gained recognition from more and more people, with its long-term value steadily increasing, while the altcoin market may face even more severe tests.
Of course, as an investor, I believe all of this reminds us to view the market rationally, especially regarding high-risk investment opportunities. Whether it's memecoins or other short-term speculative projects, what remains in the end are often those with actual application scenarios and technical support. In this process, Bitcoin will undoubtedly become a safe haven for most investors.
In summary, these analyses not only provide me with a new perspective but also strengthen my rational understanding of the market. The bubble in the altcoin market will eventually burst, and Bitcoin will continue to consolidate its dominant position in the digital currency market. In this process, we need to remain calm and not be misled by the market's short-term fluctuations, investing in projects that truly have value.
