With Bitcoin Soaring Will Altcoins Follow Along For The Ride?
Is the crypto bear market over? With Bitcoin rebounding over the past couple of months it certainly seems so. During the last bull run, there were some incredible 10X and higher moves by a wide variety of altcoins. Will we see the same this time around?
We spoke with dozens of the best crypto minds out there and asked them their opinion of how altcoins will fare this cycle. We've decided to share a handful of the best answers below…
1. John Frigo, Digital Marketing Lead, MySupplementStore
“Do I think the upswing in Bitcoin will bring altcoins with it? The answer to that is yes and no. In a sense a rising tide floats all ships so when Bitcoin goes up everything goes up. What should be more important to people however is not seeing the USD value of coins, but seeing coins in relation to Bitcoin. Many crypto users and traders get confused by this but in essence it’s possible for your Altcoin to look as if you’ve profited in USD, but in relation to BTC you’ve actually lost money on a trade.. Now with more exchanges and altcoin exchanges accepting USD and allowing people to trade in USD this is less of an issue than it was in the past, however if you’re ever trading pairs what’s important to look at is the relation to BTC since you typically have to go back to BTC before going back to fiat.
I’m personally not that excited about Altcoins, for me I’m sticking with Bitcoin, Ethereum, and Litecoin. The only altcoin I’m personally getting involved with is Binance’s BNB coin. Partly because of the popularity of the exchange and partly because I’m also a Binance affiliate and holding a certain amount of BNB doubles my commissions on referrals from 20% to 40%, if that were not the case I may have a small holding in BNB but not a ton.
I think a lot of people got burned by altcoins and ICO’s during and after the 2017 bullrun and I think many people are going to stay away. I also think the days of coins that have no working project or solution but that are nothing more than an idea are not going to flourish as they did in the past. For all these reasons I’m for the most part staying away from Altcoins this go round.”
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2. Kelly A. Ferraro, Principal, KAF Communications, LLC
“As the most prominent and well known cryptocurrency, we will naturally see movement in the altcoin market when BTC moves up or down. Given we’re (hopefully!) coming out of a long bear winter, optimism and upward moving activity will impact altcoins, without a doubt. Why? Because many many market players have been holding back both existing and new investment in this space. It’s clear that this industry has evolved to a more certain place; with the entrance of major brands and institutions, crypto (and distributed ledger technology) is here to stay. But as a new a fledgling industry, it’s not yet predictable. Investors have been watching and waiting for the right time to leap and an upswing in BTC is certainly a contributor in their decision-making of not whether to enter the space, it’s when.
Advice for those who are feeling the urge to take the leap? My advice for those that want to get involved is firstly, decide why you want to participate. There are pretty much two roads you can take; purely speculative or, investing in projects for which you believe that they have a great solution. If you go for the latter, don’t buy to sell, buy to hodl. It’s not necessarily different from an investment strategy. You can trade or you can invest. Sometime the two go together but I personally think it’s healthier to look for projects that you can see longevity in. My personal favorite for specific altcoins of course would be to look at the stablecoin space, since on a use case basis, stablecoins have great value as a digital currency that behaves similarly to the way we use currency today. To me, stablecoins are what we will be most frequently turning to when we’re using crypto in our daily lives.”
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3. Jimmy Nguyen, Bitcoin Association
“Alt-coin prices have typically followed the rise or fall of the BTC price. This is actually an unfortunate byproduct of cryptocurrency exchanges often using BTC as a key trading pair against other coins (for example, allowing users to trade BTC for ETH). As a result, BTC becomes a “base”value-setter even though it has no relevance to the other coins but still affects other coins’ prices. This reveals most crypto prices are not based upon real value. Investors should look at whether digital assets are building real long-term utility, which then supports real long term value that is independent of how BTC or other unrelated coins perform.
That is why Bitcoin SV is worth a look for its efforts to build a massively scaled blockchain for real enterprise usage. In late March, two world-record setting 128MB blocks were mined on BSV (largest ever on a public blockchain) using applications for writing data to the blockchain, and showed that BSV’s scaling roadmap works . Especially with recent debates about exchange listing support for BSV, many BSV supporters have been vocal online about challenging the status quo by not wanting BSV to be coupled with BTC trading value for these reasons.”
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4. Henry Stanley, CEO, ICOAxiom
“As the price of Bitcoin increases I expect many of the altcoins to increase in value as well. You have already seen that as the price of Bitcoin has increased from its recent lows to over $8200, you have also seen many altcoins also increase in value. I expect that correlation to continue. I believe the correlation will continue until these platforms and coins develop their own market demand where they at that point will minimize the impact of Bitcoin price swings on their currency/coin.”
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5. Martin Weiss, Founder, Weiss Crypto Ratings
It’s altcoins that have been leading the way higher since the start of the year. So we feel that Bitcoin is the one that’s been catching up to the rest of the market. While Bitcoin is up 66% this year, our
- Weiss Small Cap Crypto Index is up 84% and
- Weiss 50 Crypto Index Ex-BTC is up 89%
As you can see, whether we look at small altcoins or relatively larger ones, they have – as a group – outperformed Bitcoin itself in this recovery. We think this pattern will continue because Bitcoin is a more established and liquid asset which generally leads to under-performance in rising markets.
Learn More About Weiss Crypto Ratings.