Real Vision analyst Jamie Coutts is sounding the alarm on the altcoin market, suggesting that it is currently experiencing a bearish trend following a robust six-month rally. Coutts, a former Bloomberg analyst, shared his insights with his 18,400 followers on the social media platform X, noting that most altcoins are now underperforming in comparison to Bitcoin (BTC).
In a recent update, Coutts highlighted the challenges faced by crypto funds that are heavily invested in altcoins, despite a strong performance in the last six months from Q4 2023 to Q1 2024. He pointed out that even with Ethereum’s recent surge, there has been a lack of follow-through, particularly in the smart contract platform (SCP) sector, which continues to lag behind Bitcoin. The altseason index also confirms this downward trend, with only 18% of the top 100 assets (excluding stablecoins) outperforming BTC.
Coutts, however, remains optimistic about the future of altcoins, predicting a potential surge later in the year. He suggested that the altcoin season index, which measures the profitability of digital assets relative to BTC, could turn bullish for alts in the coming months.
“I still believe that a turnaround is on the horizon in the second half of the year, with improvements in liquidity at the margins due to recent central bank cuts. A positive signal to watch for would be a moving average bullish cross on the top chart and a reversal on the altseason index sub-chart, indicating a shift in market sentiment.”
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