Bitcoin is currently retracing from its strong parabolic move over the last few weeks. This may mean that many crypto enthusiasts are anticipating the advent of the altseason (altcoin season).
For those who are not familiar, the altseason is one of the most profitable periods in cryptocurrency trading. It is a time where other crypto tokens exponentially rise in value against bitcoin. Those who catch the move early can grow their bitcoin stockpile anywhere from 2x to 100x.
The burgeoning excitement in the CryptoTwitter community regarding the possibility of the altseason may have forced top analyst Peter Brandt to issue a stern warning. In a tweet, he wrote that “cryptomaniacs” expect that other cryptocurrencies will increase in value against bitcoin. The same way they did in the 2017 bull run. However, they might not get what they’re looking for. That’s because the analyst compared the current altcoin sentiment to the 2000 dot-com bubble. That was when many .coms filed for bankruptcy.
However, Brandt did acknowledge that “dotcoms with real value exploded.” It appears that this is his way of saying to be selective of the cryptocurrency projects that you invest in. Many do not offer real value, but those that do are bound to do really well.
Others in the CryptoTwitter community share the top analyst’s bias. For instance, a pseudonymous account that goes by the name The Crypto Monk replied that during the .com bubble, some companies went under while some prospered. The trader expects the same thing to happen to cryptocurrencies and is baffled that other people expect a different outcome.
@thecryptomonk supporting Peter Brandt’s thoughts on how some altcoins may not make it:
On the other side of the coin, there’s good news for cryptocurrencies that have a unique value proposition. ShapeShift CEO Erik Voorhees responded to Brandt’s tweet and said that “there were hundreds of very successful .coms, including now the biggest companies in the world.”
Fervent cryptocurrency supporter John McAfee also believes that some crypto tokens will become very valuable. He mentioned that digital coins “based on sound economics, especially in the Medical field and in the Privacy coins which we all know will be the big winners.” He also added that “Privacy coins are the future.”
The tech magnate John McAfee sharing his view on which altcoins to bet on in this bull run:
Be very selective of the cryptocurrencies that you invest in throughout this bull run. Buying coins just because they’ve been brutally battered is not a sound investment strategy. Instead, take time to study the fundamentals of each crypto asset and bet on the ones that offer a unique value proposition. These are the coins that are likely to explode in value in the future. Keep in mind, that price should always catch up to the fundamentals.
Last modified: June 14, 2020 9:35 AM UTC