A closely followed crypto analyst says that altcoins are on the verge of breaking out after falling short of expectations.
In a new strategy session, Real Vision chief crypto analyst Jamie Coutts tells his 18,500 followers on the social media platform X that even though Ethereum (ETH) performed well earlier this month, altcoins are still lagging behind Bitcoin (BTC).
According to Coutts, altcoins should see a turnaround sometime during the second half of 2024 as liquidity improves.
“Most crypto funds are overweight alts and not having as much fun as they would like, despite having a cracking six months from Q4 2023 to Q1 2024. Despite ETH’s recent outperformance, there’s been no follow-through (top chart) and the SCP sector continues to lag behind Bitcoin.
The Altseason index (bottom) confirms this trend, heading lower with only 18% of the top 100 assets (excluding stables) outperforming BTC. I still believe a turnaround will happen in the second half of the year – sooner rather than later, as liquidity at the margins is starting to improve (recent Central Bank cuts).”
Coutts goes on to say that he believes the latest crypto crash is a normal part of the market cycle and that opportunities await traders once the dust settles.
“This is the breakdown of the 3-month sector returns from my crypto classification framework:
- Smart Contract Platform -31.58%
- Infrastructure -43.28%
- Digital World -44.13%
- Digital Currency -31.59%
- DeFi (decentralized finance) -31.15%
- Applications -38.33%
BTC and ETH have held up -11% and 5%, respectively. If this is a regular mid-cycle correction we are experiencing, which I believe is likely, then expect some opportunities to be had in the mid and small caps once the market settles.”
BTC and ETH are trading for $66,950 and $3,482 at time of writing, respectively.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital…
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