Cryptocurrency expert Crypto Tony recently shared on Twitter about altcoins. He shared his prediction that his overall dominance could suffer a jolt by June. On the other hand, famous analyst Lyn Alden warned about altcoins. Here are the details…
Crypto Tony awaits a jolt for altcoins: 10 percent drop!
According to Crypto Tony’s tweet, he expects a 10 percent drop in altcoins in May and expects the real excitement to start in June and continue into August, provided there is demand at lower support levels around the $336 billion market cap. This prediction comes as Bitcoin (BTC) dominance shifts and altcoins gain momentum in the ongoing bull market.
As Bitcoin’s dominance over the crypto market wanes, this often marks the start of an alt season. For example, Ethereum, the world’s second largest cryptocurrency, is attracting investors to advanced blockchain technology. Thus, it has been outperforming Bitcoin lately. Data from TradingView shows that Bitcoin’s dominance rate increased from 42 percent to 48 percent in the first quarter. But this month reveals that it has had a hard time breaking that level so far.
Is altcoin season coming?
The metric has fluctuated between 38 percent and 48 percent for nearly two years. Also, drops from 46 percent to 48 percent coincided with significant gains in altcoins. The chart shows that after Bitcoin’s dominance rate dropped from 48% in July 2021, the total market cap of altcoins rose by over 60% to $1.39 trillion in two months. Similar declines in dominance in mid-October 2021 and June 2022 also boosted altcoin valuations. If history repeats itself, the crypto market could witness another surge in altcoin value.
At the time of this writing, Bitcoin is trading at $27,495, while Ethereum is valued at $1,832. As the market eases, investors and traders are eagerly waiting for the market to fully descend into a bull run. As always, investors should be cautious with forecasts. One should consider multiple factors before making a decision in the volatile crypto market.
Lyn Alden warns about cryptocurrencies: Risk of regulation and excessive leverage
As we reported as Kriptokoin.com, a warning for altcoins came from the macroeconomic analyst Lyn Alden. Alden highlights the potential risks posed by regulatory sanctions and excessive leverage. In particular, she is giving a warning to altcoin investors. In a recent interview on the Hedgeye podcast, Alden explains why these factors could trigger a downturn in altcoin markets and leave investors vulnerable to significant losses.
Alden points out that Bitcoin (BTC) may not be affected by the regulations. He also explains that Bitcoin should be distinguished from the rest of the crypto space due to the high noise/signal ratio that characterizes the broader crypto landscape. According to Alden, there are still too many “bubbles” on the market that need to be reduced. Moreover, there is increasing regulatory action in this area aimed at identifying which assets and companies violate securities laws by selling coins. As a result, investing in the broader crypto space comes with many risks. Therefore, he advises caution when investing substantial capital in this area.
Bitcoin may not be affected by regulatory enforcement as it is considered a commodity rather than a security. According to Alden, this will also make it less sensitive to editing. Alden states that this is because it does not meet the requirements of the Howey test. Alden also points out that Bitcoin’s decentralization fundamentals are stronger compared to other cryptocurrencies. The analyst states that most of the speculative activity in the Bitcoin market has been corrected by the recent bear market. He underlines that this discourages many “tourist” investors. As a result, according to Alden, regulatory enforcement actions and the potential for excessive leverage run the risk of causing a downturn in the altcoin markets.
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