Altcoins May Not Rally With Bitcoin This Time, Believes Veteran Trader Peter Brandt
Veteran trader Peter Brandt took to Twitter to predict that altcoins will not rally with Bitcoin like last time.
Bitcoin has been having a strong year so far, despite the recent volatility, which saw the leading cryptocurrency rise from around $8,500 to nearly $14,000 this month. This is great performance keeping in mind how BTC was trading around $3,500 in December last year.
Typically when Bitcoin surges like this, altcoins or alternate cryptocurrencies are quick to follow, but this time might be different if veteran trader Peter Brandt is to be believed.
In his most recent Tweet, he cited the original dotcom bubble and reminded everyone how once the dust settled, only companies with real value exploded while others sunk into oblivion. He believes the latter fate awaits most altcoins, and that may not be far from the truth.
This week’s rally also lent credibility to this opinion given how Bitcoin’s price drop resulted in much steeper losses for nearly all major coins. Moreover, the boom last time was purely speculative in nature, as lack of education and awareness led many traders to believe they could find the next Bitcoin or Ethereum by gambling on the variety of coins available.
Since then, however, most projects have failed to deliver results, burning both regular traders and ICO investors, and leaving a majority of the market participants holding ‘bags’ so to speak.
Given all this, it’s not entirely unlikely that the upcoming Bitcoin rallies may see altcoins rise, only to be sold on ‘strength’ as previous holders aim to unload their coins on new market entrants.
For now, it appears that Bitcoin is the strongest choice for medium and long-term entries in the space, followed by Ethereum, which relies on its utility to maintain the second highest market cap, but is still over 6 times behind BTC in terms of marketcap.
As always, cryptocurrencies are extremely risky investments and all entrants are advised to do their own due diligence. The publication or the author do not take any responsibility for any losses you may incur as a result of information on this website. This is not investment advice.