According to CryptoPotato, the concept of crypto market cycles, which suggests a significant bull market every four years typically triggered by Bitcoin halving, has been widely accepted by traders and analysts. Within these major cycles, numerous mini-cycles occur where certain altcoins sometimes outperform Bitcoin, potentially yielding larger gains. However, the risk lies in the possibility of not exiting the altcoin position in time, which could result in significant losses.
Renowned analyst Caleb Franzen recently highlighted a concerning fact about Cardano (ADA). Over the past 34 months, Cardano has lost 90% of its value relative to Bitcoin, indicating a significant opportunity cost for ADA holders. Franzen further noted that ADA is currently trading at its lowest point since December 2020, causing concern for many who have entered the market in recent years.
Franzen concluded his analysis by stating that this trend is a key reason why he only trades altcoins and does not invest in them long-term, as they struggle to keep pace with Bitcoin over extended periods.
It's not just Cardano that exhibits this pattern. Other altcoins, such as XRP, ETH, and TRX, have shown similar trends when compared to Bitcoin. However, some altcoins like SOL and BNB have outperformed Bitcoin in 2024. But the situation can change when the chart is viewed from a broader perspective.