A well-known crypto analyst suggests that altcoins are poised for a breakout following a period of underperformance.
During a recent strategy session, Real Vision’s top crypto analyst, Jamie Coutts, shares with his 18,500 followers on the social media platform X that while Ethereum (ETH) showed strength earlier in the month, altcoins are still trailing behind Bitcoin (BTC).
Coutts predicts that altcoins are likely to turn the tide in the latter half of 2024 as liquidity in the market improves.
“Despite a strong performance from Q4 2023 to Q1 2024, many crypto funds are heavily invested in altcoins and are not seeing the desired returns. Despite the recent success of ETH, there has been a lack of follow-through, and the SCP sector continues to lag behind Bitcoin.
The Altseason index confirms this trend, with only 18% of the top 100 assets (excluding stablecoins) outperforming BTC. I anticipate a shift in momentum in the second half of the year, with liquidity improving at the margins due to recent Central Bank cuts.”
Coutts also notes that he views the recent crypto market crash as a typical part of the market cycle, presenting opportunities for traders once the market stabilizes.
“Here is the breakdown of the 3-month sector returns from my crypto classification framework:
Smart Contract Platform -31.58%
Infrastructure -43.28%
Digital World -44.13%
Digital Currency -31.59%
DeFi (decentralized finance) -31.15%
Applications -38.33%
BTC and ETH have held relatively steady at -11% and 5%, respectively. If this correction is part of a regular mid-cycle pattern, as I believe it is, we can expect opportunities to emerge in mid and small cap assets once the market settles.”
At the time of writing, BTC and ETH are trading at $66,950 and $3,482, respectively.
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