Real Vision analyst Jamie Coutts believes that high-quality altcoins could experience significant price increases as global liquidity begins to rise. Coutts shared his thoughts with his 18,600 followers on the social media platform X, stating that the market appears to be nearing a bottom, global liquidity is set to increase, and the risk/reward outlook for high-quality altcoins is becoming more favorable.

Coutts points out that the Top 200 Equal Weight vs. market cap weight ratio is currently at extremely bearish levels, with a deviation of -2.8 standard deviations. This level of bearishness has only occurred on three previous occasions: in 2021 during a bull market, in 2022 close to the cycle lows when the market was down 70%, and in 2023 near the SEC-catalyzed capitulation lows, where altcoins broke higher four months later. Although the sample size is small, this breadth measure suggests that cyclical bottoms and mid-cycle entries may be on the horizon. Coutts notes that the current data aligns more closely with the mid-cycle slump of 2021 rather than the end of 2022/23.

Earlier this month, Coutts predicted that altcoins would experience a surge later this year. He highlighted the altcoin season index, which measures the profitability of digital assets relative to Bitcoin (BTC), and suggested that it could start showing bullish signals for altcoins in the coming months. Coutts remains confident that a turnaround will occur in the second half of the year, particularly as liquidity improves due to recent central bank cuts. He believes that a moving average bullish cross on the top chart and a reversal on the altseason index sub-chart would indicate a clear change in market conditions.

In conclusion, Coutts’ analysis suggests that high-quality altcoins may be poised for price surges as global liquidity increases. However, investors should conduct their own research and exercise caution when making high-risk investments in Bitcoin, cryptocurrency, or digital assets.