Fun

Altcoins a ‘relatively huge’ risk as days of big returns are gone, say analysts

News Feed - 2024-05-17 11:05:09

Ciaran Lyons6 hours agoAltcoins a ‘relatively huge’ risk as days of big returns are gone, say analystsAltcoins have “tactical opportunities” but not the massive gains seen in previous cycles, says 10xResearch head of research Markus Thielen.3231 Total views2 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe high-risk, high-reward theory of altcoins might be tilting toward the former as big gains are now less likely due to weak narratives driving the crypto market, say crypto analysts.


“While tactical opportunities exist, the era of 100x returns may well be behind us,” 10x Research head of research Markus Thielen told Cointelegraph.


He cautioned that despite the market anticipating an altcoin bull market in 2024, “retail participation remains subdued, and few new projects have emerged that captivate non-crypto-native traders.”


Thielen said past altcoin bull markets had “distinct characteristics” that drew in more money, but this cycle has seen “tighter capital, evidenced by low total value locked and a dearth of venture capital investments.”


“Last cycle, the narrative that crypto could supplant traditional financial systems was widely embraced, but this cycle’s narratives are shorter-lived and lack substantial backing,” Thielen added.


Earlier this week, the Solana-based memecoin GameStop (GME) — which has no affiliation to the video game seller — rose 2,727% alongside GameStop’s stock price spiking after trader Keith Gill posted a meme from his “Roaring Kitty” X account for the first time in nearly three years.GameStop briefly spiked 2,727% amid GameStop stock price rise. Source: CoinMarketCap


MN trading consultancy founder Michael van de Poppe claimed in a May 16 X post that a portfolio mainly holding altcoins poses a “relatively huge” risk.“What’s the downside of this bet? It’s relatively huge. At the moment of posting, I’m down around 20% already in a matter of 1-2 weeks on the overall investment.”


Despite the risk involved, van de Poppe explained he recently sold all his Bitcoin (BTC) to shift to altcoins, claiming he “can lose 50-80%.”


However, crypto investor Fabio Andreatta is skeptical that there will even “be an altseason.”


Related:Altcoins will bottom in early summer before bull run — Analyst


“All you did is increase your risk,” Andreatta said, responding to van de Poppe’s X post. “You are very unlikely to outperform Bitcoin. Most altcoins will never reach their ATHs ever again.”


Bitcoin’s dominance — its market share relative to the rest of the crypto market — shows the broader market has shifted capital away from altcoins


Bitcoin dominance is nearing a year-to-date all-time high, currently at 56.05%, up 2.12% over the past seven days, according to TradingView data.


Magazine:Buy altcoins now, but sell before ‘mid-2025’: Charles Edwards, X Hall of Flame


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Altcoin# Adoption# TradingAdd reaction

News Feed

Nigeria Can Become World Leader in the Digital Economy Says Vice President Yemi Osinbajo
Nigeria Can Become World Leader in the Digital Economy Says Vice President Yemi Osinbajo According to Nigerian Vice President Yemi Osinbajo, his country is well-positioned to becom
Meta Calls 2023 a ‘Year of Efficiency;’ Anticipates More Losses in Its Metaverse Division
Meta Calls 2023 a "Year of Efficiency;" Anticipates More Losses in Its Metaverse Division Meta, the company that owns Facebook, Instagram, and Whatsapp, has shared its fourth quart
Cryptowisser: Top 100 Crypto Coins Ranked by Carbon Footprint – Algorand Leads the Way
Cryptowisser: Top 100 Crypto Coins Ranked by Carbon Footprint - Algorand Leads the Way press release PRESS RELEASE. February 2022: Leading Crypto service comparison site Cryptowisse
Facebook’s Novi Launches Pilot Program in Guatemala and US Using Pax Dollar
Facebook"s Novi Launches Pilot Program in Guatemala and US Using Pax Dollar Novi, Facebook’s digital wallet, will launch a pilot program to test the functionality of the ser
Biggest Movers: AXS Falls Lower Following Hacks, While ZIL Climbs by Over 50%
Biggest Movers: AXS Falls Lower Following Hacks, While ZIL Climbs by Over 50% AXS was trading lower on Wednesday, after it was reported that the Axie Infinity network Ronin suffere
CoinEx Announces Global Strategic Partnership with Matrixport to Provide Over-the-counter Service
CoinEx Announces Global Strategic Partnership with Matrixport to Provide Over-the-counter ServiceHong Kong, 27 April, 2020 – CoinEx , a global and professional cryptocurrency
Nigeria Protest Group Asks for Bitcoin Donations After Regulators Block Bank Account
Nigeria Protest Group Asks for Bitcoin Donations After Regulators Block Bank Account A Nigerian protest group called Feminist Coalition is asking well-wishers to
Number Of New Trump-Themed Malicious Tokens Spike 206% After Official Memecoin Launch
Este artículo también está disponible en español. The ongoing TRUMP memecoin frenzy has sparked the creation of hundreds of tokens inspired by the US president and his fa
Paypal Completes Rollout of Crypto Offering in UK: First International Expansion Outside US
Paypal Completes Rollout of Crypto Offering in UK: First International Expansion Outside US Paypal has completed the first international expansion of its cryptocurrency offering ou
UNI, SUSHI, MKR, Defi Tokens See 24 Hour Double-Digit Gains, Defi TVL Jumps 6% in 2 Weeks
UNI, SUSHI, MKR, Defi Tokens See 24 Hour Double-Digit Gains, Defi TVL Jumps 6% in 2 Weeks While a number of popular crypto-assets like bitcoin have been consolidating, decentralize
Socios.com Will Invest $100 Million in FC Barcelona Metaverse Push
Socios.com Will Invest $100 Million in FC Barcelona Metaverse Push Socios.com, a company dedicated to the development of fan engagement tokens for sports organizations, has reveale
Tron’s USDD Stablecoin Experiences Fluctuations Again, Drops Below $1 Parity in Early 2023
Tron"s USDD Stablecoin Experiences Fluctuations Again, Drops Below $1 Parity in Early 2023 The Tron-based stablecoin USDD fell below $1 parity again during the first week of 2023 a