Is Altcoin Season Coming? Is Investing in Altcoins Still “High Risk, High Reward”?

Is Altcoin Season Coming? Is Investing in Altcoins Still "High Risk, High Reward"?

Is Altcoin Season Coming? Is Investing in Altcoins Still "High Risk, High Reward"?

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Altcoins are left with only risks
Selling Bitcoin is a bet on altcoins
Altcoins cannot outrun Bitcoin
Cryptocurrency analyst Markus Thielen stated that due to the weak narrative driving the cryptocurrency market, the “high-risk, high-return theory” of altcoins may now only be left with high risks. Markus Thielen, the head of research at 10x Research, told the media outlet Cointelegraph that although the market expects a bull market for altcoins in 2024, retail investors’ participation is still quite low, with hardly any new projects able to attract non-native cryptocurrency traders’ attention.
Markus Thielen stated that past altcoin bull markets had “clear characteristics” that attracted more funds, but this cycle has shown “tight funding,” as evidenced by the low total locked asset value and lack of risk investment. Markus Thielen added:
However, there are still people who believe that the altcoin season will appear in this bull market. Michael van de Poppe, the founder of MN Trading Consultancy, stated in a tweet on May 16 that he recently sold all his Bitcoin and switched to altcoins, claiming that he “can lose 50-80%.” Michael van de Poppe stated that a portfolio primarily holding altcoins could bring “relatively large” risks.
Meanwhile, cryptocurrency investor Fabio Andreatta is skeptical about the possibility of an “altcoin season.” Andreatta responded to van de Poppe’s tweet saying:
According to data from TradingView, Bitcoin’s dominance is approaching its highest point of the year, currently at 55.88%, with an increase of about 2% in the past seven days.