Only 8 Altcoins Have Surpassed Previous All-Time Highs Against Bitcoin Since FTX’s Demise – Analyst Shares Insight
During this period of bull market, the crypto industry has been riding the wave of Bitcoin’s success and benefiting from the bullish momentum. However, many investors are eagerly awaiting a significant surge that will propel altcoins to new highs.
Recent online reports have revealed that since the collapse of FTX, only eight altcoins have managed to reach new all-time highs (ATH) in relation to Bitcoin. A crypto analyst has offered their perspective on this matter.
Altcoins Struggle to Outperform Bitcoin in This Cycle
On Friday, crypto analyst Miles Deutscher shared an intriguing fact about the current state of the crypto market. Since November 2022, only eight altcoins have surpassed their previous ATH against the dominant cryptocurrency.
These altcoins include Render (RNDR), Tellor (TRB), Injective (INJ), Astar (ASTR), SSV Network (SSV), SingularityNET (AGIX), True Wallet Token (TWT), and Binance Coin (BNB).
It should be noted that RNDR was the most recent altcoin to achieve this feat on March 11, and the aforementioned list only consists of altcoins that were launched before FTX’s collapse.
Deutscher expressed his initial surprise at this finding, but soon made sense of it and drew some key takeaways based on the unique characteristics of this market cycle.
First, the analyst believes that asset selection dynamics have changed compared to previous cycles. Investors have faced consequences for being overly exposed to certain sectors like Layer 2 (L2) and gaming, while being rewarded for participating in sectors like Memecoins and AI.
In the previous cycle, Deutscher highlights, “you could basically bet on anything and beat $BTC.” However, he expects that despite the injection of retail liquidity, the market will likely continue to witness specific sectors outperforming others.
Deutscher also underscores the fact that the crypto industry operates within an attention economy, where money flows to areas that garner attention. Therefore, even projects with the best technology might fail to perform if there isn’t a compelling reason to invest in them.
The analyst’s second takeaway revolves around the dilution of all-time highs in the current market. He points out that thousands of new products are launched daily, and “low float/high FDV VC coins are launching in the billions.” Consequently, altcoins are struggling to keep up with performance, as the rate of new launches seems to be surpassing the influx of new liquidity.
Greater Potential for Altcoins to Catch Up
Deutscher’s third point revolves around the fact that the bull run has primarily been driven by Bitcoin and spot BTC exchange-traded funds (ETH). Considering this, he believes it is unsurprising that altcoins have not experienced significant price pumps thus far.
Various other crypto analysts and experts share this viewpoint. Alex Krüger previously noted that the current cycle has been “almost entirely” driven by the momentum of Bitcoin ETFs.
Deutscher views the underperformance of altcoins as a positive indicator, as Bitcoin’s dominance has played a crucial role in prior cycles. He believes that this underperformance allows altcoins to have “more room to play catch up” and potentially reach new, unprecedented highs.
The analyst believes that the market requires another catalyst to trigger a true altcoin season. Nonetheless, he highlights that many investors have experienced stellar results in Q1, even in mildly bullish conditions for most altcoins.
Ultimately, Deutscher suggests that there is still ample opportunity to achieve substantial profits in this market cycle, “even without the face-melting altseason we all crave.”
**Featured Image from Unsplash.com, Chart from TradingView.com**