Crypto Market Analysis: Why Now Might Not Be the Ideal Time for Altcoin Investment!
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Renowned YouTuber and cryptocurrency analyst Crypto Rover argued against investing in altcoins—at least for now. Here are the reasons underpinning his cautionary stance.
Now is not the time to invest in #Altcoins.
Here is why:
– The market volume is drying up, and VC’s aren’t investing in altcoins.
– Retail investors are scarce and mostly out of funds. Few are even considering Bitcoin, much less Altcoins.
– The focus is on a Spot Bitcoin… pic.twitter.com/Wanvn6MJqg
— Crypto Rover (@rovercrc) September 20, 2023
Drying Liquidity and VC Apathy
First and foremost, Crypto Rover pointed out that market volume for altcoins is “drying up.” This isn’t just idle chatter; data from CoinMarketCap and other tracking platforms corroborate a notable decline in trading volumes. Alongside this, venture capital (VC) firms seem to have tightened their purse strings regarding altcoin projects. This starkly contrasts the VC fervor that fueled the rise of notable coins like Chainlink, Polkadot, and others.
Retail Investors Holding Back
The retail market, often considered the lifeblood of the crypto industry, also appears to be holding its collective breath. With economic uncertainties, many retail investors are either “out of funds” or are steering clear of riskier altcoin ventures, as per Crypto Rover. Even Bitcoin, the flagship cryptocurrency and typically a safer bet, isn’t getting as much love from retail pockets.
The Bitcoin ETF Limelight
Most of the institutional and regulatory focus currently is on a potential Spot Bitcoin Exchange-Traded Fund (ETF). ETFs provide a less risky entry point for traditional investors into the crypto world, but the emphasis is predominantly on Bitcoin rather than its lesser-known counterparts. In the wake of the SEC’s cautious approach to crypto, this Bitcoin-centric viewpoint further alienates altcoins from receiving institutional investment.
Crypto Rover notes that the altcoin market usually gains momentum when Bitcoin surpasses its all-time high, currently at $69,000. This milestone tends to trigger a “retail FOMO,” attracting individual and venture capital investment back into altcoins. Historically, Bitcoin’s market dominance continues growing until it breaks its previous peak, often catalyzing renewed interest in altcoins.
Given these factors, Crypto Rover’s strategy is to focus on Bitcoin investments now and transition to altcoins at the opportune moment. This shift would presumably occur once Bitcoin hits a new all-time high, igniting market sentiment and attracting retail and institutional investment back into the altcoin arena.
Filed under: Bitcoin - @ September 20, 2023 12:24 pm