Altcoin
Identifying the next big altcoin in this market cycle
Cryptocurrency analyst Scott Melker recently had a conversation with Dan Tapiero, founder of 1Roundtable Partners and the duo opened up about the current state of the market. Melker asked Dan whether a drop in Federal Reserve interest rates from 5% to 3% could significantly increase the price of Bitcoin, possibly pushing it above $100,000.
Melker said that Without the ETFs, Bitcoin might have been trading between $35,000 and $45,000, but the ETF pushed it higher, creating the impression that the entire market would follow suit, which has not happened for altcoins.
Reacting to his statement, Dan said that the inflow of money from ETFs is substantial and ongoing, bringing $100 trillion worth of assets to the market. This makes it easier to invest a large amount of capital in Bitcoin, accelerating its adoption. This new accessibility means that there are now more buyers ready to support Bitcoin at various price points, helping its growth.
Dan said an Ethereum ETF could shift interest towards decentralized finance (DeFi) and potentially start a new altcoin season, although it may look different from past cycles. Some projects may not recover or function as before. The success of Ethereum is important for driving enthusiasm and investment in the broader crypto ecosystem.
Melker went on to say that the next big token in the market cycle is likely to be something new rather than existing known coins. The market tends to favor new, exciting projects, which often see dramatic price increases and drops.
Bitcoin and Ethereum are considered mainstream assets, while many other cryptocurrencies are more like venture capital projects. Some projects, particularly those that rank around 30th or 40th in terms of market capitalization, may be overvalued or even defunct, but they continue to trade and hold value.
Dan said: “I don’t know, alt season isn’t the end of it. I think Bitcoin and ETH are really the only fundamental assets in the space. Solana is moving that way, but the other cryptocurrencies are incredible how much value they have.”