CANCELLED: Altcoin Season Leaving Investors Stumped
The recovery of Bitcoin this year has reawakened the optimism within investors, many of whom watched their cryptocurrency portfolios plunge 70–90% in 2018. At the brink of oblivion and uncertainty, Bitcoin’s drop to $3,200 followed a historic recovery to $14,000.
Bitcoin is still above $10,000 at the time of writing. With over 400% gains, it is the best-performing asset YTD on Earth, but rival altcoins have failed to keep up. In fact, they didn’t even wake up for 2019…
Throughout 2019, the majority of altcoins have been decimated. The largest altcoins by market cap are also still in a bear market against Bitcoin. In USD terms, altcoins have rebounded, to a certain extent, but not as strongly as BTC in terms of percentage – altcoins are mostly still dormant.
To the discomfort of altcoin investors, it seems the annual altcoin season is on hold for the time being. Despite price surges with LTC, BSV, and ETH against USD, if valued against Bitcoin, the ratio remains in Bitcoin’s favor!
Source: https://athcoinindex.com/
Most altcoins are still yet to recover, while Bitcoin takes the glory!
Why are Altcoins Failing to Keep Up?
“Altcoin Season” is a term many traders and investors in the crypto community use to describe an uptrend in price and market dominance amongst altcoins.
Source: https://coinmarketcap.com/charts/#dominance-percentage
According to the image provided by statistic Website CoinMarketCap, Bitcoin’s market share of the crypto markets has risen back to 70%. During 2017, the parabolic growth of altcoins ate into the total market share of the crypto market, leaving Bitcoin with 33% of the lion’s share. 2018 saw altcoins deflate, with capital flowing back into Bitcoin’s ecosystem.
Other studies and data providers have recently suggested that Bitcoin’s market dominance is actually over 90%. This is due to liquidity problems with altcoins and a return to a valuation based on success and adoption.
“One might be able to sell one token for 3 dollars, but what happens if you want to sell 1 million? Without accounting for liquidity, market capitalization becomes a meaningless measure.” – Arcane Research
Huge Opportunities for the Winning Altcoins and Patient Investors!
The strongest cryptocurrencies will ultimately survive and flourish. Liquidity and trading volume are key, but other factors will play a major role in the adoption of digital currencies, such as scalability, network effects, and fundamental growth.
The long-term winners that can weather this dormant trend could provide patient investors with returns that dwarf what we have already seen in recent years.
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.
