Keep your Altcoins but avoid exchanging Bitcoin for Altcoins Find out when popular cryptocurrencies will bounce back
In his latest analysis video, analyst George, also known as Crypto Rus, discussed the current market situation, describing it as stagnant. Despite a brief surge to $67,000, Bitcoin quickly dropped back to $65,500, indicating some volatility. However, George reassured viewers that Bitcoin remains strong, considering its recent high of $72,000 just 10 days ago. On the other hand, the outlook for altcoins appears grim.
Upon reviewing his portfolio after weeks, George noticed significant declines in altcoins compared to Bitcoin. Bitcoin dominance has been on the rise, causing many altcoins, such as Solana, Avalanche, Polygon, and Chainlink, to experience heavy losses. Even projects in artificial intelligence and gaming sectors are facing a downturn.
While George advised against abandoning altcoins entirely, he cautioned against converting Bitcoin into altcoins at this time. Historically, altcoin seasons tend to occur towards the end of market cycles. In the previous cycle, altcoins only saw substantial gains towards the end of 2021, despite Bitcoin’s strong performance.
George suggested that now might be a good opportunity to gradually invest in promising altcoins through dollar-cost averaging, as many are expected to recover. However, he emphasized that exchanging Bitcoin for altcoins may not be prudent currently, despite the potential for future altcoin growth.
He expressed confidence in Bitcoin’s fundamentals, anticipating that market dips will eventually subside. Following the recent Bitcoin halving event, George predicted that Bitcoin could start an upward trend post-September. Factors such as possible rate cuts, the introduction of Bitcoin spot ETFs, and upcoming elections could drive this movement. Until then, Bitcoin dominance may continue to increase, posing challenges for altcoins.
George highlighted the risk of holding altcoins as their value could significantly drop if Bitcoin dominance rises. This could result in a decrease in the overall portfolio value when measured in Bitcoin terms, which can be disheartening. The main purpose of investing in altcoins is to outperform Bitcoin, allowing investors to increase their Bitcoin holdings without additional expenses. He cautioned against the FOMO (fear of missing out) trend in meme coins, which could provide substantial returns but also carry higher risks.
George remained optimistic about Bitcoin hitting new highs, possibly reaching $70,000 or $73,000 soon. However, he acknowledged the challenges faced by those heavily invested in altcoins and meme coins in the current market scenario.