An anonymous crypto analyst, known as Altcoin Psycho, believes that market participants are not optimistic enough about the chances of a spot Ethereum (ETH) exchange-traded fund (ETF) being approved by regulators. Altcoin Psycho, who has a large following of 501,800 followers on the social media platform X, argues that the market is underestimating both the likelihood of an ETH ETF being approved and the impact it will have on the price of ETH. The analyst suggests that buying ETH before the ETF is approved, specifically when it is priced under $3,000, will be seen as a smart move in hindsight, just as it is now obvious that buying Bitcoin before its ETF was approved would have been profitable.
According to data from the prediction market platform Polymarket, only 13% of traders believe that an ETH ETF will receive approval by the end of the month. Altcoin Psycho, however, believes that market participants will eventually shift their capital towards established crypto projects, known as blue-chip projects, at the expense of meme coins. The analyst anticipates that the current scattered attention in the market will narrow as investors seek quality investments, which will result in a sell-off of meme coins. Although Altcoin Psycho does not believe that the overall market cycle has peaked, he suggests that the peak for meme coins is not far away. The analyst asserts that meme coins are merely a gateway into the crypto market and not the end game. Those who disagree with this perspective are encouraged to study past market cycles.
In terms of the artificial intelligence (AI) sector, Altcoin Psycho goes against the prevailing sentiment that an AI bubble is about to burst. Instead, the analyst argues that the AI sector is still in its early stages and predicts that it will become one of the biggest speculative manias ever witnessed. Altcoin Psycho believes that while the majority of AI startups will fail, the surviving 1% will be incredibly valuable and will carry the AI bubble to new heights. This assertion is based on the analyst’s conviction in the potential of the AI sector, comparing it to the belief that SOL at $15 was a must-buy. Altcoin Psycho acknowledges that there will be naysayers who claim victory when most AI startups fail, but he remains confident that the surviving companies will drive the sector forward.
As always, it is important to note that the opinions expressed by Altcoin Psycho and The Daily Hodl are not investment advice, and investors should conduct their own research before making any high-risk investments in cryptocurrencies or digital assets.
