Amidst the sharp rise in Bitcoin prices, experts share their insights on the cryptocurrency's future and its impact on the altcoin market.
Two Scenarios for Bitcoin
Bitcoin has reached a new record high, exceeding $123,000. Samson Mow, CEO of Jan3, described two possible scenarios for Bitcoin's future movement in a post on X.
The first scenario, named "Godzilla or Omega", suggests that Bitcoin could surge dramatically, leading to a 30-40% drop in altcoins as capital rapidly shifts back into the market leader.
The alternative scenario links a potential peak in the current altcoin boom with a massive selloff. Mow states that altcoins are already “running too hot”, and this potential selloff would be a result of the ‘Bagholder's Dilemma’ losing equilibrium. In this case, Bitcoin could briefly dip before rallying again while altcoins plummet.
Mow's Take on Ethereum
Mow also expressed skepticism regarding Ethereum, currently trading around $4,760. He stated that it's “impossible that Ethereum is worth 4,600,000 BTC”, adding that it will be hard for ETH to break its previous all-time highs. Over the past 30 days, ETH has risen by 58%, while Bitcoin increased only 3.5%.
Analysis of the Altcoin Market
Experts note that altcoins are currently gaining attention. Henrik Andersson, CIO at Apollo Capital, expects Ethereum and DeFi tokens to continue growing due to favorable regulations and new opportunities like tokenizing real-world assets. Mow stated that Bitcoin will undoubtedly set new records after the altcoin boom ends, remarking, “This is just how it’s always been.”
The rise in Bitcoin prices and volatility in the altcoin market highlight the instability and complexity of the cryptocurrency ecosystem. Expert expectations may help investors better understand future trends.
