Over the past few weeks, bitcoin has rallied up quite strongly grabbing the attention of the investors and the general community. Although this is the biggest cryptocurrency by market capitalization across the globe, what is expected to be of the “altcoins”, cryptos other than bitcoin, in this space? Are they also expected to be increased price-wise? As per Thomas Lee’s analysis, who is the co-founder of Fundstrat Global, the next altcoin season might just be around the corner, buckle up.
As per Thomas, one of the pre-requisites for the altcoin season to come in the past had been the low correlation of altcoins (ALTs) and the BTC. Since the drop in correlation has just started recently again, we might just be in the altcoin season already. This analysis comes off as critical for those investors in the crypto space which resort to cryptos other than bitcoins for gaining profits.
2/ past alt-seasons averaged 1,100% gains
Will the next alt-season be as strong as the past? Given there are probably only ~50mm active wallets (vs 5 billion Visa/MasterCard accts), we think crypto still early in the adoption curve. So it should be similar pic.twitter.com/cgTBOHteMT
— Thomas Lee (@fundstrat) April 20, 2019
Bitcoin is just one of the 2000+ cryptocurrencies listed on CoinMarketCap, but there are other coins as well linked to various projects which show promising prospects about the future. Ethereum, XRP, Binance Coin, Litecoin, EOS, TRON, BAT etc. are some of the examples in this regard. If bitcoin is not trusted by some investor, he/she can choose the crypto linked to his/her favorite project in the game and can earn possible rewarding outcomes. But a bigger question is, will the next alt-season be stronger than the past ones? Thomas points out that because the crypto space is still in its early adoption phase, the next altcoin season might just be similar to the previous ones.
Crypto’s adoption is something that has many roadblocks in front of it. The initial use-case of cryptocurrencies was driven by their usage in illegal activities, money laundering, etc. But later on, as the technology progressed, many legal use-cases were found with time. It is believed that cryptos present forward the alternative to the centuries-old banking system. Although illegal and negative activities still persist to some extent, the positive outcomes have also emerged out. Overall, the connotation attached with cryptocurrency in the media and the general public has largely remained to be negative.
If the crypto space is to grow big and gain more mainstream adoption from various financial institutions and the general public, it needs to curb out the negative elements linked to it. With the passage of time, developments are made regarding the legislative aspect of this nascent space as well. It will be interesting to see how things proceed as time moves forward.