Recent movements in the cryptocurrency market raise questions about the future of Bitcoin and altcoins. Analysts share differing opinions on how the situation may unfold.
Scenarios for Bitcoin
Samson Mow, CEO of Jan3 and a noted Bitcoin advocate, outlined two possible scenarios for BTC. The first option is that Bitcoin's rally accelerates, attracting liquidity away from other coins and leading to a sharp decline in altcoins. The second scenario suggests that altcoin prices may peak, triggering a sell-off that briefly dips Bitcoin before its next rise.
Altcoin Market
Mow expressed skepticism about Ethereum's market value, calling it 'unsustainable' and due for correction. Recent data shows that ETH surged 58% over the past month while Bitcoin added only 3.5%. This raises questions about the overheating of the altcoin market as Bitcoin's dominance fell below 60%.
Future of the Crypto Market
Some analysts, like Henrik Andersson of Apollo Capital, expect altcoins to temporarily take the spotlight, supported by favorable regulations and growth in tokenized real-world assets. The total value locked in DeFi has reached record highs, driving revenues for protocols. Nick Ruck of LVRG Research noted that increasing altcoin volumes alongside falling BTC dominance suggests a new phase led by Ethereum and speculative DeFi plays.
Whether Bitcoin quickly regains market momentum or temporarily cedes it to altcoins, most observers agree that the coming weeks will be pivotal in shaping the next leg of the crypto market cycle.
