Some cryptocurrency traders believe that altcoins may be a better alternative to Bitcoin at this stage, but not everyone agrees.
Article written by: Ciaran Lyons
Source: Cointelegraph
Article compiled by: Ada, MetaEra
As Bitcoin dominance approaches 60% as prices stagnate by the end of 2024, more and more traders believe it’s time to move to altcoins.
“At this juncture, altcoins offer a more optimized R/R [risk-reward] profile than Bitcoin,” Dyme, an anonymous cryptocurrency trader, said in a Dec. 27 X post, adding: “The time to stake Bitcoin has ended, and ideal staking opportunities are not expected to occur for more than 1.5 years.”
According to a survey released by Kraken on October 7, about 83.5% of cryptocurrency investors used a Dollar-Cost Averaging (DCA) strategy, and 59% of investors still consider it their primary way to purchase cryptocurrency.
The Dollar-Cost Averaging strategy refers to the practice of regularly investing a fixed amount to purchase a particular asset at fixed intervals to capture price fluctuations in the market, thereby achieving an averaged purchase cost.
Dyme told his 64,400 followers on the X platform that the altcoin market in 2025 will become 'extremely crazy', pointing out that from Dogecoin to Solana, and even more memecoins, there may be higher risk/reward opportunities in these assets.
However, Dyme stated that existing Bitcoin holders should "hold on and go with the flow." "Of course, on the premise that the market cycle continues to exist," he added.
Tyler Durdan, CEO of SOAP Capital, expressed a similar view in a post on X on December 26, stating that "the next step will be amazing." Durdan added, "I think the market cycle may still exist."
Adam Cochran, a partner at Cinnaeamhain Ventures, also agreed with this view, believing that in the current congressional environment in the U.S., the opportunity to establish a strategic reserve of Bitcoin is limited, so it may be difficult for Bitcoin to outperform other markets in the short term.
"Other assets will benefit from regulatory clarity, new product launches, and a new ICO era, which will draw a lot of liquidity away from Bitcoin," Cochran stated in a post on X on December 26.
Shift in attitudes towards Bitcoin at high levels in the U.S.
However, some observers, including Blockchain Association CEO Kristin Smith, believe that the momentum for Bitcoin is far from over, and there is still room for growth for new investors, even in the current phase of the cycle.
In an interview with CNBC on December 26, Smith stated that Bitcoin will break through $200,000. According to CoinMarketCap data, this prediction means Bitcoin would rise about 108% from its current price.
Bitcoin's current trading price is $95,720, and CryptoQuant contributor Darkfost recently stated that $95,000 is a "favorable range for implementing a DCA strategy."
Smith added that the incoming Trump administration, combined with the shift in attitude at the 'high levels' in the U.S. and more support from financial advisors, will trigger a new wave of capital flowing into Bitcoin.
"As more and more financial advisors recommend their clients invest in Bitcoin, I believe more people will flock to this market," Smith said.
"People hold Bitcoin to seek more opportunities, not to reduce their holdings," she added.
