Altcoin
Is Altcoin Season “A Myth”? A researcher sheds light on why Benzinga’s “The days of easy mode are over.”
Benzinga – Cryptocurrency researcher Distilled cryptocurrency challenged the concept of “altcoin season” and explored the factors contributing to the lackluster performance of altcoins despite That of Bitcoin (CRYPTO: BTC) solid performance.
What happened: Distilled Crypto notes that although Bitcoin has reached $60,000, sentiment remains dismal and the expected 2021 altcoin season has yet to materialize. He delves into the key differences in this cycle, highlighting them That of Ethereum (CRYPTO: ETH) and the premature surge of other altcoin sectors. “Although some sectors excel, there is no widespread surge,” notes the trader.
Is “Altcoin Season” a myth? (Part 2)$BTC is at $60,000, but sentiment is terrible.
The “2021” altcoin season is nowhere in sight.
Are we super early or is CT the new retail?
Here is my take on the state of the altcoin market.
Save and bookmark this post – let’s explore together.… pic.twitter.com/YGaM8HGx7c
— Crypto, Distilled (@DistilledCrypto) May 10, 2024
Accessibility to Bitcoin has improved significantly, with ETFs and traditional brokers offering exposure without the need for complex portfolio management. He argues that lack of awareness is not the main issue hindering the growth of altcoins. “Bitcoin has been around for over 15 years and has seen many cycles,” she notes. “Its financial history, while solid, no longer commands attention.”
Instead, Distilled Crypto attributes the altcoin market’s difficulties to a supply and demand issue, saying: “The market lacks sufficient liquidity and retail interest. Demand for altcoins is very low, but there is an abundance of choices.” The rapid rise of altcoins has diluted an already saturated market, making a widespread altcoin boom exceptionally difficult.
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Despite these challenges, Distilled Crypto believes that altcoins are not a lost cause, but emphasizes that the game has changed. “The days of ‘easy mode’ are over,” he says. “If you can’t trade attention, you’ll probably end up destroyed.”
For those who are not trading inclined, Distilled Crypto suggests focusing on thorough research and picking multi-cycle winners in institutionalized sectors and next-generation primitives.
Read also: With Altcoins at First ‘Weekly Gold Cross’, This Top Trader Remains ‘Heavily Allocated’
Because matter: Looking ahead, Distilled Crypto predicts that attention and liquidity will continue to dominate the market in the near term. However, as regulations tighten and the altcoin market becomes saturated, a fundamental-focused strategy may prevail. “Just be prepared: it may take longer than expected,” warns the researcher.
Distilled Crypto’s analysis echoes the sentiments of another cryptocurrency researcher, Gideon, who warned in early May 2024 that retail investors are unlikely to lead the ongoing bull run. He pointed out that Bitcoin has reached new all-time highs thanks to the purchasing power of ETFs, not retail investors, and that retail interest and savings are currently low.
What’s next: Bitcoin’s influence as an institutional asset class is expected to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.
Read next: Is it time for Altcoins to shine? Expert Predicts Bullishness for DOGE as BTC Finds Solid Ground
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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