As a seasoned analyst with over two decades of experience in various financial markets, I’ve seen my fair share of bubbles and busts. The crypto space is no exception, and it seems that we are currently navigating through one such cycle.
Crypto holders beware. The vast majority of cryptocurrencies are going to zero. Incredible performances in previous bull markets are a thing of the past. Make sure you only hold the winners.
Altcoins spectacular gains may be over
It’s highly unlikely now for a cryptocurrency or digital token to skyrocket by several thousand percent within just a few weeks, as they were often nothing more than a pledge and essentially non-existent at the time. For those of you new to this field, tales about certain tokens turning their holders into millionaires might have piqued your interest. However, such periods of rapid wealth creation are a thing of the past.
Indeed, certain cryptocurrencies have thrived significantly during this ongoing bull market. However, many of these success stories are likely memecoins, which are known for having no inherent value. The extraordinary surge they experience often leads to a consistent plummet back to zero.
So does this mean that the cryptocurrency space is dying?
Crypto brought incredible innovation
As a analyst, I’m observing a transformative impact on the global financial landscape, primarily driven by innovations within the crypto sphere. This technology enables near-instant transactions, without the need for intermediaries, allowing for seamless transfers, day or night, between individuals across borders, regardless of their geographical location.
Indeed, it’s a misconception that crypto is on its way out. Beyond financial applications, numerous innovative uses are under development. However, it’s important to remember that for every successful application being developed, there may be countless others that have fallen short or will do so. This is no different from the business landscape in traditional industries.
The case with many altcoins this cycle
As a crypto investor casually scanning through the rankings of the top 1000 cryptocurrencies on platforms like Coinmarketcap or Coingecko, I often come across many projects whose price charts bear a striking resemblance to the one you see here. The first wave, fueled by initial hype, offers that brief opportunity for the fortunate few to jump in and out with some profit. However, what follows is another wave that peaks at a lower level, before plunging into an almost inevitable downward trend toward zero.
As an analyst, I find myself compelled to address those who have invested in similar digital assets to the one we’re discussing. It’s crucial to confront a stark truth: while there is a minuscule, almost comical, possibility that this project could mirror the success of Solana, the odds are decidedly against you. Investing in such ventures often involves taking a gamble, and it’s important to consider the statistical likelihood before making decisions based on hope alone.
Even top-50 ranked altcoins are dying
Among the first 50 most valued cryptocurrencies today, some are struggling to survive, with many having been popular favorites just a few months ago at the start of this year.
Consider Filecoin (FIL) as an example. Currently ranked 38th among all cryptocurrencies. At one point, its value reached $189, but now it’s at just $3.61. Have a look at its chart. Given the current crypto bull market’s progression, we might be more than halfway through. If it was on an upward trend, wouldn’t you expect to see a recovery by now?
The graph of Internet Computer (ICP) doesn’t instill much optimism, as its value dropped from $461 to $6.97 even amidst a bull market, suggesting a likely unfavorable result in the near future.
As a researcher, I find myself contemplating the current state of Cardano (ADA), ranked at number 11 on Coingecko, which has recently displayed a chart that may instill a sense of apprehension among its holders. The downward trajectory from $3.00 to $0.33 is not typically associated with a leading altcoin’s performance.
Absolutely! If Bitcoin (BTC) experiences a strong bull market leading up to 2025, it could potentially raise all ships in the crypto market. However, being on the swiftest and most agile cryptocurrencies would be advantageous during this scenario. Unfortunately, it seems that many of these digital currencies may have a difficult time returning to their previous record highs.
Does your altcoin chart look anything like this?
Essentially, when evaluating your altcoins, it’s crucial to compare their performance with Bitcoin. If an altcoin’s graph doesn’t resemble Bitcoin’s in any significant way, then there might not be a strong reason for keeping them in your portfolio. After all, if they aren’t performing as well as Bitcoin, what makes you believe they will yield better returns?
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2024-08-13 14:13