A well-known cryptocurrency analyst predicts that altcoins are on the cusp of a breakout following a period of underperformance.
During a recent analysis session, Real Vision’s top crypto analyst, Jamie Coutts, shares with his 18,500 followers on the social media platform X that while Ethereum (ETH) showed promise earlier this month, altcoins are still trailing behind Bitcoin (BTC).
Coutts suggests that altcoins are likely to turn the tide in the latter half of 2024 as liquidity in the market improves.
“Despite a strong performance in Q4 2023 to Q1 2024, most crypto funds are heavily invested in altcoins and are not experiencing the excitement they had hoped for. Despite ETH’s recent success, there has been a lack of follow-through, with the SCP sector still falling behind Bitcoin.”
“The Altseason index confirms this trend, with only 18% of the top 100 assets (excluding stablecoins) outperforming BTC. I believe we will see a turnaround in the second half of the year, sooner rather than later, as liquidity is showing signs of improvement.”
Coutts further explains that he views the recent crypto market crash as a normal part of the market cycle, presenting opportunities for traders once the market stabilizes.
“Here is a breakdown of the 3-month sector returns from my crypto classification framework: Smart Contract Platform -31.58%, Infrastructure -43.28%, Digital World -44.13%, Digital Currency -31.59%, DeFi (decentralized finance) -31.15%, Applications -38.33%. BTC and ETH have remained relatively stable at -11% and 5%, respectively. If this is a typical mid-cycle correction, as I believe it is, we can expect opportunities in the mid and small caps once the market settles.”
At the time of writing, BTC and ETH are trading at $66,950 and $3,482, respectively.
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