Here’s Why Altcoins Aren’t Pumping As Hard As Bitcoin
Bitcoin’s bull run in the past couple of months has not gone unnoticed by the cryptocurrency community and many have predicted that the altcoin season is underway. However, Vijay Boyapati, a cryptocurrency enthusiast thinks otherwise after outrightly stating that the current bull market is different from the others because each time a rally occurs, Bitcoin pumps while altcoins trade sideways.
Previous Bull Markets Differ from the Current One
In a tweet on July 3, 2019, Vijay Boyapati noted that in the previous bull markets, each time Bitcoin surged, it was also accompanied by a higher spike in the price of altcoins. Thus, it could be said that these assets were gaining value in BTC terms. However, in the current bull market, things are different because, at each rally in Bitcoin’s price, altcoins lose ground in BTC terms.
Vijay Boyapati further outlined that the uncorrelated price movement in Bitcoin and altcoins can be attributed to the fact that investors have learned their lesson “from the foolishness of 2017.”
It can be said that in 2017, a lot of virtual assets were launched in the market by some developers who were only looking to ride the Bitcoin wave of profit. In ICOs, they sold their tokens for Bitcoin even before it surged to its all-time high of $20,000. Some of these projects were abandoned which negatively impacted on the price of their tokens and left many investors wrecked.
Altcoins’ Same Parity with Bitcoin Could Make Them a Horrible Investment
Vijay Boyapati took it one step further by saying that even if altcoins finally maintained parity with Bitcoin, that would make them a horrible investment. Some of the reasons he pointed out for coming to that conclusion is that altcoins are riskier, less liquid, and are more centralized.
“They need to significantly outperform BTC to offset the above downsides,” he said
Another tweet from June 22, 2019, shows that Boyapati’s opinion was quite similar to this one. Last month, he opined that several crypto traders are claiming that the altcoin season is around the corner. Nonetheless, people need to be cautious because the current bull market may be characterized by the monetization of Bitcoin alone.
Despite Market Sentiment, Assets with Utility Will Stand the Test of time
While responding to Boyapati’s tweet, another trader opined that irrespective of the prediction from cryptocurrency traders that the alt season is coming or it is only the season for Bitcoin, in the end, it is the assets that have real-life use cases that will stand the test of time.
The cryptocurrency market, on the other hand, has been less volatile today in comparison with previous days. Bitcoin currently has a 63.9% dominance of the entire market and the last time it reached these numbers was in October of 2017.
What’s also noticeable is that each time Bitcoin surges, a good number of altcoins decline in price which gives the impression that these assets are being dumped for the top currency by market cap.