Why are altcoins still risky now?

The cryptocurrency market has undergone significant changes recently, and many analysts have warned against investing in altcoins. Traditionally, in a bull market, Bitcoin and Ethereum rise first, followed by altcoins. However, the current market situation shows that this pattern is changing.

Quinn Thompson, founder of crypto hedge fund, advises against investing in altcoins at this time. He pointed to several indicators of market instability, including high leverage and open interest, lack of panic buying, and stagnant stablecoin supply. He believes that the market is facing increasing selling pressure, especially from venture capital funds that need to raise funds. This phenomenon of selling more than buying, coupled with low trading volume in the summer, has made it difficult for altcoins to gain attention.

Inflation problem of altcoin supply: New altcoins are launched quickly, flooding the market and causing huge inflationary pressure. Many project parties have issued a large number of tokens, resulting in supply far exceeding demand. Thompson pointed out that the supply of altcoins is expected to swell by about $3 billion per month in the next one to two years, but there is a lack of demand to support it. While some altcoins may still perform well, identifying these successful tokens will be more difficult than in previous years. "Altcoins face continued selling pressure. As we enter the summer season with lower trading volumes, the combination of large token supply unlocking and selling pressure from venture capitalists may make it a tough battle for most tokens,

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