As a seasoned crypto investor with several years of experience in this volatile market, I have learned to expect the unexpected when it comes to altcoins. However, the recent altcoin price crash following Bitcoin’s decline has left me feeling uneasy.
In the aftermath of Bitcoin‘s price drop, altcoins have been hit harder in the cryptocurrency market, causing significant losses for many investors. It’s important to note that this isn’t unexpected given altcoins’ reputation for greater volatility than Bitcoin. Consequently, their price fluctuations can be more dramatic. Although there is hope for a recovery, one analyst holds a dissenting view.
Altcoins Headed For 40% Crash
In a recent post on X, renowned cryptocurrency analyst Benjamin Cowen made waves in the crypto sphere with his predictions for altcoins. Based on his analysis, the altcoin market’s downturn is not yet at its end, as further price drops are anticipated.
As a researcher studying the cryptocurrency market, I have found that when comparing altcoin pairs with Bitcoin, each alternative coin appears weaker. This trend can be attributed to the anticipated rate cuts, as historical data indicates that a downturn is likely to occur following such monetary policy moves.
A crypto analyst looked back to the impact of 2019’s interest rate reductions on altcoins. Following these cuts, altcoins experienced significant declines against Bitcoin, resulting in losses of up to 40% for major investors during this period. Cowen posited, “Could history repeat itself? If so, ALT/BTC pairs could experience an additional 40% decrease from their current levels over the coming months.”
As a crypto investor, I believe Cowen’s expectation holds true no matter the current market conditions. He clarified that even if the market experiences a short-term recovery, it doesn’t negate the underlying thesis. “Short-term market reversals don’t undermine this perspective,” I would paraphrase his statement.
As an analyst, I would caution that if the current market downturn persists, it could lead to an even more severe bloodletting in the already harsh cryptocurrency landscape. The total market capitalization of altcoins currently hovers around $1 trillion, but a potential 40% drop could push it down to approximately $600 billion.
Bitcoin Crash Drags Down Crypto Market
As a crypto investor, I’ve experienced firsthand the harsh reality of this recent Bitcoin crash. However, it’s essential to note that while Bitcoin has taken a significant hit, the aftermath for altcoins has been even more pronounced. For instance, Ethereum has shown resilience with a minimal decline of almost 4% during this period. In contrast, coins like Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI) have seen an average drop of around 9% in the last 24 hours alone.
As a researcher studying the cryptocurrency market, I’ve observed that meme coins took a hit during the recent market downturn. Dogecoin, the market leader among these digital assets, saw a 6% drop in value to reach $0.126. PEPE followed closely behind with a 7.74% decline, bringing its price down to $0.0000063. Bonk (BONK) experienced a 5% decrease, giving back some of the gains it had made the previous week. Lastly, Shiba Inu slipped by 4.18%.
Amidst the volatile crypto market, I’ve managed to identify some noteworthy gains. Specifically, Optimism (OP) surged by 12%, making a significant impact on my portfolio. Cosmos (ATOM) was a close second with an impressive 9.8% growth, while Starknet (STRK) also showed strong performance with a rise of 9%. According to the latest data from Coinmarketcap, these three cryptocurrencies have been the top gainers for me today.
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2024-05-02 05:17