Following Bitcoin’s meteoric rise in 2017, retail investors searching for the next Bitcoin loaded up on altcoins and other crypto assets hoping to get in early and strike it rich.
But the bubble popped, and now altcoins are down in some cases as much as 99% from their all-time high prices set back during the peak euphoria of the bull cycle. However, one crypto analyst says that the worst is still yet to come for the altcoin market, and a much deeper drop could be ahead.
Altcoin Apocalypse Hasn’t Started Yet
Bitcoin and altcoins have an unusual relationship, oftentimes diverging in price showing uncorrelated price action, while other times the two asset types rise and fall together in a correlated manner.
2019 kicked off with both asset types bottoming out and going on to rally shortly thereafter. But once April 2019 hit, the two crypto asset types diverged and have yet to become correlated once again. Bitcoin went parabolic, gaining as much as 350% at the first-ever cryptocurrency’s local 2019 high, meanwhile, most altcoins suffered huge losses in their BTC ratios, and some even went on to set new bear market lows.
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Many were calling the capitulation event the altcoin apocalypse, and talk about the asset classes’ demise became commonplace.
Alts have since begun to rebound once again, reviving some of the bullish sentiment the asset class once enjoyed, even despite still being down as much as 80% or more in many cases.
However, even though altcoins have taken an extreme beating, second only to altcoin investors themselves stuck holding increasingly heavy bags, one crypto analyst believes that the worst is yet to come for the altcoin market, with a deep fall to lower support a strong possibility in the weeks ahead.
I don’t understand why people think that once $BTC starts dumping it’s going to be alt season.