Market Overview

Three reasons for future altcoins collapse

Three reasons for future altcoins collapse

As bitcoin roars back into a bull market, traders are eagerly awaiting “alt-season,” a parabolic jump in altcoins that historically follows bitcoin’s rise. But they’re going to be disappointed. There won’t be an alt season in this hype cycle. Not like 2017, anyway. Altcoins like XRP, EOS, XLM, BSV and many others in the top 20 will drastically underperform bitcoin in this bull run unless they make a major real-world breakthrough. And hundreds of altcoins will disappear completely. Here’s why:

1. This time it’s “Bitcoin, not blockchain”

The whole narrative around bitcoin is different this time around. In the last hype cycle, leading figures in the tech and banking industries always kept their distance from bitcoin. They all used the same “blockchain, not bitcoin” mantra. All signs suggest the coming bull run will be rooted in institutional money. Expect them to “play safe” and stay in bitcoin as they test the waters.

2. The catalysts for “alt season” are gone

Last time round, the stage was perfectly set for a parabolic alt coin run-up. Ethereum emerged to help launch hundreds of blockchain projects. Initial Coin Offerings (ICOs) exploded and money poured into every “bitcoin-killer” on the market. Now ICOs are dead. After getting burned in 2017, venture capital will be much more selective. And regulators will be watching much more closely. The quality of projects will improve.

3. Bitcoin derivatives will give traders their thrills instead of alts

There’s another reason behind my prediction. In 2016-2017, traders looked at the altcoin market to find enormous gains. This time around, traders have access to better and more secure leveraged trading. Instead of chasing huge returns from the wild west altcoin market, traders will tap into the established liquidity of leveraged bitcoin trading.

Altcoin Apocalypse Coming: 3 Reasons Leading to a Brutal Altcoin Reckoning, CCN, Jul 04
Article Rating
Rate this post