Actual Imaginative and prescient’s chief crypto analyst, Jamie Coutts, is leaning bullish on altcoins regardless of the prevailing bearish sentiment.
Coutts says that sentiment is “so bombed out”, as evidenced by the ratio between the equal cap weight and the market cap weight of the highest 200 largest altcoins by market cap, which is at a four-year low.
Based on Coutts, the ratio means that some altcoins are on the cusp of a bullish reversal.
“Structural problems with investing within the asset class apart, the place we’re at the moment are ranges the place, previously, you begin to see high-quality altcoins begin to get well.”
Turning to Bitcoin (BTC), Actual Imaginative and prescient’s chief crypto analyst says that the Market Worth to Realized Worth (MVRV), a metric used to evaluate the typical profitability of cash in circulation, is suggesting that Bitcoin reached a cycle peak within the fourth quarter of 2024 and that “we should always brace for the bear market.”
Based on Coutts, varied components may decide whether or not Bitcoin stays bearish or resumes an uptrend.
“Firstly, each cycle/regime is completely different. This time, we’ve got a US administration hellbent on closing the [federal budget] deficit – that’s creating extra uncertainty and can influence dynamics going ahead.
However is China/Europe higher off or worse off at the moment versus 4 to 6 years in the past? They’ll seemingly have to do extra this time and fill the void if the U.S. Treasury/Federal Reserve is extra constrained.”
The Actual Imaginative and prescient chief crypto analyst says that whereas the MVRV metric suggests Bitcoin has already reached the present cycle’s peak, loads will rely upon world liquidity circumstances. Based on Coutts, Bitcoin may get pleasure from extra upside if the worldwide liquidity improves however may very well be primed for a downward trajectory if the liquidity stays constrained or falls additional.
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