Time For An Altcoin Boom? Think Again

Remember when we said that the road to $15k BTC wouldn’t be smooth? Well, since then bitcoin prices hit $13,000 and then $14,000…. and then hit $11,000 before slipping just below $10k. We’re sticking to our guns: don’t fear the dips, because we’ve seen this movie before.

Bitcoin dominance hit a high of 62% last the weekend, which is the highest it has been since 2017. This means that BTC has been grossly outperforming altcoins during this bull run.

 

Source: Coin Market Cap

 

Many traders who have been involved in crypto markets since before the 2017 bull market are now crossing their fingers for another altcoin surge, like the one in 2017. 

Just look at how fast the bull cycle ran its course in 2017. The following bitcoin dominance values show how quickly value moved from BTC to altcoins: 

  • 49% BTC dominance on November 12 2017
  • 67% BTC dominance on December 7 2017
  • 43% BTC dominance on December 21 2017 
  • 32% BTC dominance on January 4 2018

Many traders are now  waiting for their bags to pump, but this bull run looks fundamentally different from the last. We’re now far less likely to see the same kind of altcoin returns we did back in the Wild West of 2017.

There are five main reasons to cross alt season off your calendars: 

  1. The latest run includes institutional players rather than just retail speculators. We’ve seen Facebook, JPMorgan, Yale and other institutions join the industry. These are the same companies which banned crypto advertising and called the industry a sham back in the last bull market. 
  2. There is much less irrational ICO spending. One of the reasons why value poured from from BTC to ETH is that ICO investors were using bitcoin as an onramp in order to invest in ICOs. The number of published ICOs is now substantially lower in 2019 and is still declining. 

 

Number of ICOs by month
Source: ICO Drops

 

  1. Onchain metrics, such as hashrate, have remained steady, indicating sustained interest in BTC infrastructural investment. As Crypto Briefing

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