A closely followed crypto analyst says that altcoins are on the verge of breaking out after falling short of expectations.
In a new strategy session, Real Vision chief crypto analyst Jamie Coutts tells his 18,500 followers on the social media platform X that even though Ethereum (ETH) performed well earlier this month, altcoins are still lagging behind Bitcoin (BTC).
According to Coutts, altcoins should see a turnaround sometime during the second half of 2024 as liquidity improves.
“Most crypto funds are overweight alts and not having as much fun as they would like, despite having a cracking six months from Q4 2023 to Q1 2024. Despite ETH’s recent outperformance, there’s been no follow-through (top chart) and the SCP sector continues to lag behind Bitcoin.
The Altseason index (bottom) confirms this trend, heading lower with only 18% of the top 100 assets (excluding stables) outperforming BTC. I still believe a turnaround will happen in the second half of the year – sooner rather than later, as liquidity at the margins is starting to improve (recent Central Bank cuts).”
Coutts goes on to say that he believes the latest crypto crash is a normal part of the market cycle and that opportunities await traders once the dust settles.
“This is the breakdown of the 3-month sector returns from my crypto classification framework:
- Smart Contract Platform -31.58%
- Infrastructure -43.28%
- Digital World -44.13%
- Digital Currency -31.59%
- DeFi (decentralized finance) -31.15%
- Applications -38.33%
BTC and ETH have held up -11% and 5%, respectively. If this is a regular mid-cycle correction we are experiencing, which I believe is likely, then expect some opportunities to be had in the mid and small caps once the market settles.”
BTC and ETH are trading for $66,950 and $3,482 at time of writing, respectively.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here
Follow us on Google News to get the latest Updates
