Altcoin
Altcoins pose a ‘relatively huge’ risk as days of big returns are over, analysts say — TradingView News
The theory of high-risk, high-reward altcoins may lean toward the former as big gains are now less likely due to weak narratives driving the cryptocurrency market, crypto analysts say.
“While tactical opportunities exist, the era of 100x returns may be behind us,” Markus Thielen, head of research at 10xResearch, told Cointelegraph.
He warned that while the market is anticipating an altcoin bull market this year, “retail participation remains subdued and few new projects have emerged that fascinate non-crypto-native traders.”
Thielen said previous altcoin bull markets had “distinct characteristics” that attracted more money, but this cycle saw “tighter capital, highlighted by low total value locked and a dearth of venture capital investment” .
“Last cycle, the narrative that cryptocurrencies could displace traditional financial systems was widely shared, but this cycle’s narratives are shorter-lived and lack substantial support,” Thielen added.
Earlier this week, the Solana-based memecoin GameStop (GME) – no affiliation with the video game sales company – rose 2,727% along with GameStop’s stock price rising after trader Keith Gill posted for the first time a meme from her “Roaring Kitty” X account in almost three years. Cointelegraph
Michael van de Poppe, founder of MN trading consultancy, said in a May 16 post
“What is the downside to this gamble? It’s relatively huge. At the time of publication, within 1-2 weeks I have already lost around 20% on my overall investment.”
Despite the risk involved, van de Poppe explained that he recently sold all of his Bitcoin 
However, cryptocurrency investor Fabio Andreatta is skeptical that there will even be “an altseason.”
“All you’ve done is increase the risk,” Andreatta said in response to van de Poppe’s X post. “It is very unlikely that you can outperform Bitcoin. Most altcoins will never reach their all-time highs again.”
Bitcoin’s dominance – its market share relative to the rest of the cryptocurrency market – shows that the broader market has shifted capital away from altcoins
According to TradingView data, Bitcoin’s dominance is approaching its all-time high since the beginning of the year, currently at 56.05%, up 2.12% in the last 7 days.
This article does not contain investment advice or recommendations. Every investing and trading move involves risk, and readers should conduct their own research before making a decision.