While cryptocurrency investors eagerly await a potential altcoin season, an analyst argues it won’t happen as most expect because new cryptocurrency investors are rushing to buy the most speculative assets.
What's Happening on the Altcoin Front?
Glassnode’s chief analyst James Check explained on the Rough Consensus podcast on August 29 that this process is no longer amusing. Analyzing investor behaviors during the 2021 bull run and comparing it to 2024, Check stated that investors are trying to outsmart the market by buying the most hyped memecoins as quickly as possible. In past bull runs, memecoins typically surged towards the end of a broader market rally, but this time assets are rallying faster than ever. Check shared the following insights:
Details on the Subject
Notably, PEPE recorded striking gains in the first half of 2024, and a few selected investors made significant profits. On May 15, a savvy PEPE investor made a profit of $46 million from an initial investment of $3,000 in April, yielding a return of 15,718 times. However, despite the rising prices of PEPE and other major memecoins like Dogwifhat (WIF), Check mentioned a gap, while other investors and analysts interpret the declining prices and lower-than-expected trading volumes of altcoins as a bullish signal for future price movements.
Luke Martin's Comment
On August 29, crypto investor Luke Martin told his 331,500 X followers that altcoins are currently at a level where you should buy more. Martin said that when Bitcoin was at this level in the summer of 2020, its price sextupled in the second half of the year: 'Prices followed a vertical trajectory from $10,000 to $60,000 in the next 6 months.'
Based on James Check's analysis and comments from other experts, it is unlikely that we will witness a traditional altcoin season due to the changed behavior of investors in the market.
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