Market Sentiment Shifts Towards Altcoins
Bitcoin Still Holds Huge Potential
Market Sentiment Shifts Towards Altcoins
According to a report by Cointelegraph, prominent cryptocurrency trader Dyme tweeted on December 27th on X (formerly known as Twitter), stating, “At this stage, altcoins offer a more favorable risk/reward ratio compared to Bitcoin. Dollar-cost averaging (DCA) Bitcoin has run its course and is not suitable for the next 1.5 years.”
According to a survey released by Kraken on October 7th, about 83.5% of cryptocurrency investors have used the DCA strategy, and 59% of investors still consider it as their primary way of purchasing cryptocurrencies. However, Dyme’s advice is targeted at investors who have not entered the market or are planning to increase their holdings. As for existing Bitcoin holders, Dyme suggests continuing to hold and ride the wave, assuming the market maintains its current trend.
Expert Perspective: Altcoins May Have Their Moment of Glory
Tyler Durdan, CEO of Soap Capital, expressed a similar view in a tweet on December 26th, claiming that “the next wave of momentum will be glorious.” Adam Cochran, a partner at Cinneamhain Ventures, also believes that Bitcoin’s chances of becoming a strategic reserve asset in the United States are slim, meaning that it will be difficult for Bitcoin to outperform other assets in the market in the short term. He pointed out, “Other assets will benefit from regulatory clarity, new project launches, and new ICO trends, which will drain a significant amount of liquidity from the Bitcoin market.”
Bitcoin Still Holds Huge Potential
However, some observers, including Kristin Smith, CEO of the Blockchain Association, argue that Bitcoin’s momentum is far from over and that there is still upside potential for new investors even at the current price level. During an interview with CNBC on December 26th, Kristin Smith predicted, “Bitcoin will reach $200,000 before it reaches $50,000.” This means Bitcoin is expected to increase by about 108% from its current price. Kristin Smith also added that the incoming Trump administration, along with a shift in the attitudes of senior US policymakers and more financial advisors recommending Bitcoin investments to their clients, will trigger a new wave of capital inflows into the Bitcoin market. “As more retail financial advisors recommend Bitcoin investments to their clients, we will see more money flowing into Bitcoin.” “People are choosing to hold more Bitcoin rather than less.”
Furthermore, cryptocurrency analyst Darkfost recently pointed out that $95,000 is a “region suitable for implementing a dollar-cost averaging (DCA) strategy.”