Some people say that this milestone marks the peak for Bitcoin – the time to sell cryptos. We take the counter.
Bitcoin has finally done it.
It hit an all-time high this week, briefly jumping above $70,000.
Some people say that this milestone marks the peak for Bitcoin – the time to sell cryptos.
We take the counter.
We believe this milestone is the time to buy cryptos, and especially altcoins that do not bear the Bitcoin name.
Contents
What happened to cryptos this week?
So far, Bitcoin has been the leader in this crypto boom cycle. Bitcoin dominance – which measures the value of Bitcoin as a percentage of the total crypto market value – has been rising steadily in recent months, as Bitcoin has risen above $20,000, $30,000, $40,000, $50,000, $60,000 and now $70,000.
But something very interesting happened last week.
Bitcoin’s dominance fell quite a bit as “meme coins” like FLOKI, Shiba Inu, Pepe and Dogwifhat all rose by more than 100% in a matter of days.
Specifically, Bitcoin dominance fell noticeably this week from 55% to 53%, one of the largest weekly declines in the past year, which also saw Bitcoin rally in the same week. That is, Bitcoin dominance often falls because Bitcoin falls more than other altcoins in a bad week. But this week, Bitcoin’s dominance fell as Bitcoin rose less than other altcoins in a good week.
This is an optimistic signal for a healthy expansion of this crypto rally.
More good signs in the altcoin market
Furthermore, the MarketVector Digital Assets 100 Small Cap Index – a collection of the top 100 cryptos outside of Bitcoin – absolutely crushed Bitcoin last week.
For most of the crypto rally in 2024, Bitcoin has outperformed the MarketVector 100 index. Last week, the MarketVector 100 index took the lead from Bitcoin.
This is another optimistic signal for a healthy expansion of this crypto rally.
Read the writing on the wall
The signs are there.
Not only did Bitcoin rise to all-time highs this week, but altcoins have finally started to significantly outperform Bitcoin. The baton appears to be being passed from Bitcoin to other, smaller cryptos in the crypto markets.
This is very bullish. This means that some altcoins could experience an absolute crash in the next few months.
Consider it: Bitcoin surpassed its 2021 highs last week, but there are several other major altcoins Away from their 2021 highs.
Ethereum is still about 30% below its 2021 highs. Tron and Binance are about 40% below their 2021 highs. Solana is still 50% below its 2021 highs. Polygon is 65% below its 2021 highs. Both Uni and Avax are 70% below their 2021 highs. And Dogecoin, XRP and Litecoin are all 80% below their previous highs.
Overall, altcoins still have a long way to go before regaining their 2021 highs, although Bitcoin managed to do so last week.
We think it is reasonable to believe that in the second half of this fourth crypto boom cycle, many altcoins will follow Bitcoin and reach new record highs.
This means that some altcoins could experience an absolute surge in the next 12 months.
That is our basic thesis. We believe altcoins are in the early stages of an explosive rise over the next few months.
This is why we recently went on an altcoin buying spree.
The last word
One of the cryptos we just recommended in our premium crypto research service is already up more than 155% since we recommended it – just over a week ago.
Another is up 100% since we recommended it – just over a month ago.
The altcoins in our model portfolio are currently flying high.
And we don’t think they’re finished. In fact, they may just be getting started.
Click here to learn more about this premium crypto research service and get access to the best cryptos you can buy right now.
At the time of publication, Luke Lango did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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