Jamie Coutts, the chief crypto analyst at Real Vision, noted a positive outlook for altcoins despite the prevailing low-risk appetite. His assessment reveals that the ratio between market capitalization-weighted rankings and equal cap-weighted rankings is at its lowest in four years, indicating that some altcoins may begin to recover.
Altcoin Predictions
According to analyses, the current pricing structure of altcoins has reached levels historically associated with recoveries in high-quality altcoins. This situation supports the notion that new opportunities may arise in market sentiment.
While Bitcoin’s decline may start later, the nightmare for altcoins has persisted since mid-December. This trend has led to excessive selling in many cryptocurrencies. Investors may now become more aggressive in preparation for potential peaks in the second quarter of the year. Moreover, uncertainties regarding tariffs are diminishing, with volatility expected to increase in favor of bulls from April 3rd onwards.
Bitcoin Predictions
Coutts mentioned that the Market Value to Realized Value (MVRV) metric for Bitcoin $0.000032 indicates that it may reach a cycle peak in Q4 2024. This situation raises concerns that Bitcoin could experience downward movement depending on global liquidity conditions.
Jamie Coutts: “Despite structural issues with the investment vehicle, current levels align with past recovery points for high-quality altcoins.”
He also commented on the different trajectories of current cycles, indicating that U.S. efforts to close the budget deficit create uncertainties. This context suggests that global liquidity and dynamics could impact Bitcoin’s performance in the future.
Jamie Coutts: “Each cycle or regime is different. U.S. policies to close the budget deficit are one of the factors that will influence market dynamics.”
Coutts indicated that Bitcoin might have upward movement potential depending on improvements in global liquidity, but a continuation of the downward trend is likely if liquidity remains constrained. In summary, while we may not see new major peaks for BTC, a recovery period for altcoins could be underway.
The news emphasizes that market watchers should be cautious regarding potential volatility and uncertainties in altcoins and Bitcoin. The assessments provide clues about the strong connection between the investment environment and global economic dynamics.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.