A popular crypto analyst predicts that investors will turn to a select group of altcoins following the recent dip in the market. Altcoin Psycho, a pseudonymous analyst with over 501,200 followers on X, a social media platform, believes that investors will rotate their funds into cryptocurrencies with a market capitalization of at least $1 billion.

According to Altcoin Psycho, the recent market meltdown has caused investors to reconsider investing in speculative altcoins. He believes that this downturn will lead to a flight to quality, with mid and high-cap altcoins experiencing a surge once the market stabilizes.

The analyst also identifies three crypto subsectors that he believes will have a significant impact on the digital asset industry. He expresses skepticism about most artificial intelligence-focused crypto projects, considering them to be “vaporware,” but believes that the remaining 1% will revolutionize the industry, along with tokenized real-world assets (RWAs) and stablecoins.

Altcoin Psycho reiterates his belief that artificial intelligence (AI) will be the key player in the 2024 bull market. He had previously mentioned in his predictions for 2024 that AI is his highest conviction bet, and he remains bullish despite it becoming a contrarian view.

Earlier this month, Altcoin Psycho highlighted the undervalued nature of AI crypto projects compared to the market cap of popular memecoins. He pointed out that the entire AI vertical in the crypto space has a market cap of around $40 billion, while Dogecoin alone has a market cap of $27 billion and Shiba Inu has a market cap of approximately $15 billion.

As of now, the top AI coins in the crypto space have a combined market cap of $20.57 billion, according to CoinGecko.

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