The Current State of the Altcoin Market
If you’re feeling like the altcoin market is not in a bull run, you’re not alone. Analyst Miles Deutscher recently analyzed the data and uncovered some surprising truths about the current market state. Despite Bitcoin nearing all-time highs and meme coins gaining popularity, the reality is quite different for altcoins. Most retail investors are more heavily invested in altcoins, which have been underperforming this cycle.
The Trend of Altcoins vs Bitcoin
When we look at the OTHERS/BTC ratio, which measures the total crypto market cap excluding the top 10 coins, we see that it is currently lower than it was 8 months ago in October 2023. This indicates a clear picture of the current market situation. Since the fall of FTX, only a few coins have surpassed their previous all-time highs compared to Bitcoin. Altcoins (TOTAL3) are still 70% away from their previous highs, while Bitcoin is on the verge of reaching its all-time high.
The Bitcoin-narrative Led Cycle
Miles Deutscher pointed out that this cycle has been led by the Bitcoin narrative. The narrative that drove Bitcoin to its all-time highs was the spot ETF narrative and the corresponding inflows. While Bitcoin and altcoins are connected, there hasn’t been a strong overarching catalyst for the broader market like Bitcoin has experienced.
Since Bitcoin surged from $27k in October, altcoins have not seen a sustained rally. The market phases of altcoins over the last three quarters clearly show that this has been a cycle led by the Bitcoin narrative, fueled by the spot ETF narrative and strong inflows.
The Impact on Altcoins
- Altcoins have not had a significant catalyst like Bitcoin
- Specific narratives like memes, AI, and real-world assets have outperformed
- Major altcoins have lagged behind in performance
If you have not been well-capitalized in these sectors, you may have experienced FOMO and felt the strong urge to rebalance your portfolio.
Conclusion
It’s clear that the current market state paints a different picture for altcoins compared to Bitcoin. With altcoins still far from reaching their previous highs and lacking a strong catalyst, investors may need to consider their strategies moving forward in this cycle.
Hot Take: A Deeper Look Into the Altcoin Market
The analysis conducted by Miles Deutscher sheds light on the current state of the altcoin market, revealing that we are not currently experiencing an altcoin bull run. Understanding the dynamics between Bitcoin and altcoins is crucial for navigating the market effectively. As the market continues to evolve, staying informed and adapting to the changing trends will be essential for success in the cryptocurrency space. Keep an eye on the market trends and be prepared to adjust your strategies accordingly.
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