Market Sentiment Shifts Towards Altcoins
Bitcoin Still Has Huge Potential
Market Sentiment Shifts Towards Altcoins
According to a report by Cointelegraph, well-known cryptocurrency trader Dyme tweeted on December 27th on X (formerly known as Twitter), stating, “At this stage, altcoins offer a more favorable risk/reward (R/R) ratio compared to Bitcoin. Dollar-cost averaging (DCA) Bitcoin has run its course and is not suitable for the next 1.5 years.”
According to a survey conducted by Kraken on October 7th, about 83.5% of cryptocurrency investors have used the dollar-cost averaging (DCA) strategy, and 59% of investors still consider it their primary method of purchasing cryptocurrencies. However, Dyme’s advice only applies to investors who have not entered the market or plan to increase their positions. For existing Bitcoin holders, Dyme suggests holding on and taking advantage of the current trend, provided that the market continues to maintain its current direction.
Expert Opinion: Altcoins May Have Their Moment of Glory
Tyler Durdan, the CEO of Soap Capital, expressed a similar view in a tweet on December 26th, claiming that “the next wave of momentum will be glorious.” Adam Cochran, a partner at Cinneamhain Ventures, also believes that Bitcoin’s chances of becoming a strategic reserve asset in the United States are slim, which means that in the short term, Bitcoin is unlikely to outperform other assets in the market. He pointed out, “Other assets will benefit from regulatory clarity, new project launches, and a new ICO frenzy, which will draw a significant amount of liquidity away from the Bitcoin market.”
Bitcoin Still Has Huge Potential
However, some observers, including Kristin Smith, the CEO of the Blockchain Association, believe that Bitcoin’s momentum is far from over and that there is still potential for it to rise even at the current price level for new investors. In an interview with CNBC on December 26th, Kristin Smith predicted, “Bitcoin will reach $200,000 before reaching $50,000.” This means that Bitcoin is expected to rise by about 108% from its current price. At the same time, Kristin Smith also added that the incoming Trump administration, along with a shift in the attitude of senior U.S. policymakers, as well as an increasing number of financial advisors recommending Bitcoin investments to their clients, will trigger a new wave of capital inflows into the Bitcoin market.
“As more retail financial advisors recommend Bitcoin to their clients, we will see more capital flowing into Bitcoin.” “People are choosing to hold more Bitcoin, not less.”
Furthermore, cryptocurrency analyst Darkfost recently pointed out that $95,000 is an “area suitable for implementing a dollar-cost averaging (DCA) strategy.”
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