Altcoin
Altcoins signal buying after taking hits since March: investment opportunities emerge
After suffering significant declines since March, experts say altcoins could offer buying opportunities for investors as market conditions stabilize.
Mid- and small-cap altcoins may present investment opportunities amidst a recent market correction
After “picking up steam” over the past four months, the altcoin cryptocurrency market may offer “some opportunities” for investors.
Second CointelegraphAltcoins with market capitalizations under $10 billion may be preparing to offer “some opportunities” to investors, as they have suffered a decline in value since Bitcoin hit a new high in early 2024.
“Small-cap crypto assets have been targeting since the March high this year,” RealVision chief crypto analyst Jamie Coutts wrote in a June 13 X. send.
According to Cointelegraph Markets Pro, Bitcoin has fallen nearly 6% over the past week to $67,126, following an all-time high of $73,679 on March 13.
“If we are experiencing a regular mid-cycle correction, which I think is likely, then expect there to be some opportunities in mid- and small-caps once the market stabilizes,” Coutts added.
Equal Weight Top 200 Index Falls 30%, Highlighting Underperformance of Smaller Cryptocurrencies Compared to Market Leaders
According to cryptocurrency tracking data from Bitformance, the top 200 equal weights index, which equalizes the weight of cryptocurrencies regardless of their market capitalization, has declined by more than 30% over the past three months compared to the capitalization index of market, which weights cryptocurrencies by their market capitalization.
The decline suggests that smaller cryptocurrencies have demonstrated underperformance compared to larger cryptocurrencies that dominate the market capitalization index.
Meanwhile, Coutts noted that Bitcoin and Ether saw declines of just 11% and 5% respectively over the same three-month period.
It further stated that tokens related to the index metaverse had the lowest returns over the past three months, with a negative return of 44.13%.
In the sub-$1 billion market cap category, Metaverse Tokens second CoinGeckoboth Decentraland and Sandbox have seen declines of more than 15% in the last week.
It coincides with the continued expansion of institutional interest in cryptocurrencies beyond Bitcoin and Ether.
Franklin Templeton revealed on June 6 that it is exploring the development of a new cryptocurrency fund that would expose institutional investors to alternative currencies.
The asset manager did not specify the altcoins that make up the fund’s portfolio; however, he recently expressed his admiration for the Solana network.
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