Benzinga – Pseudonymous crypto trader “Cold Blooded Shiller” raises the question of whether the market is already beginning to phase out certain altcoins in favor of stronger performers and Bitcoin (CRYPTO: BTC).
What Happened: Shiller points out that each crypto cycle sees coins that have a strong run but fail to make new all-time highs in subsequent cycles. During the current cycle, Bitcoin’s strength cannot be doubted, and there have been strong altcoin narratives and spectacular meme coin runs. However, Shiller notes an interesting separation among altcoins.
Is it possible we’re already seeing the phasing out of certain coins?
Each cycle we see coins that have a strong run, and then go on to never make a new ATH ever again.
During this cycle one thing that can not be doubted is the strength of $BTC. Then we have strong alt… pic.twitter.com/OGzoySztEt
— Cold Blooded Shiller (@ColdBloodShill) April 28, 2024
Meme coins like Dogwifhat (CRYPTO: WIF), Pepe (CRYPTO: PEPE), and Floki Inu (CRYPTO: FLOKI) have seen gains in the range of 1,600% to 360% on year-to-date basis. Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) also reported gains of 57% and 125% respectively.
Using Polygon (CRYPTO: MATIC) as an example, the trader highlights how the token has undone its entire 2023/2024 run-up and is trading under a key support level, while BTC holds up well and other altcoins maintain their gains from the last seven months. Lido (CRYPTO: LDO) and ApeCoin (CRYPTO: APE) are the other two examples.
remove ads
.
“It would make sense to simply ignore the alts that have failed to maintain any of their 7-month run-up, and we can easily determine strength from the % of gains kept,” the trader notes.
Also Read: Meme Coins Are ‘A Pure Ponzi’ And ‘Destroying Crypto,’ Says Trader Who Thinks Dogecoin Was Different
Why It Matters: Shiller ponders whether these underperforming altcoins are doomed to irrelevancy and if the market is already making decisions to phase out coins in preference for stronger performers or Bitcoin.
However, this process occurs between cycles, but this time market may be making these decisions during the current climate, Shiller suggests.
The trader’s advice points out that spotting good altcoins can be more challenging than anticipated. Traders may want to use a framework, such as this trader’s “technique to spot altcoins before a 100X surge.”
What’s Next: The influence of altcoins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Is The ‘Memecoin Supercycle’ Over? Mad Crypto Alpha With Ivan
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
