A prominent crypto analyst has put forward the idea that leading altcoin projects could be on the verge of a significant price increase, based on a key metric. Jamie Coutts, the chief crypto analyst at Real Vision, suggests that “high quality” altcoins may be approaching a market bottom, as indicated by the top 200 equal weight index versus market cap ratio. This index tracks the performance of the top 200 cryptocurrencies by market cap relative to Bitcoin. Coutts believes that, based on historical data, certain altcoins may soon complete their correction phase and start to reverse course. However, he also notes that until there is a reversal in the ratio chart trend, an “altseason” is unlikely to occur. Coutts predicts that small-cap altcoins will continue to struggle until Bitcoin surpasses its all-time high, which he still expects to happen this year. Additionally, Coutts suggests that the broader altcoin market may not begin to recover until late 2024 or early 2025, based on the underperformance of many altcoins compared to Bitcoin. He points out that only 11% of altcoins have outperformed Bitcoin in the past 90 days, indicating negative alt sentiment. Coutts expects the bottoming process to take several months before a recovery occurs, potentially by late Q4 of 2024 or early 2025. He compares the current situation to the “2020 pukes” versus the collapse at the end of the 2022 cycle. As always, investors are advised to conduct thorough research and due diligence before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets.
