After a sharp correction yesterday, many alt-coins are bouncing this morning. For example, Ripple which rocketed to second place in the market cap table (over $8 billion), fell more than 25% yesterday, but is up over 6% as of 7am EST. Is this the last good opportunity to get out of alt-coins before a crypto bear market ensues? No doubt the recent run-up over the last month has been nothing short of spectacular. My sense is that smart traders will use this latest turn to dump much of their remaining alt-coin bags on the market, while less-sophisticated investors will interpret this bounce as a "return to normal." We'll see how it plays out.
I see this quite differently.
"My sense is that smart traders will use this latest turn to dump much of their remaining alt-coin bags on the market, while less-sophisticated investors will interpret this bounce as a "return to normal." We'll see how it plays out."
I take it that you are counting yourself as a smart investor. :)
We have seen a glut of investment in cryptocurrency over the past couple of months and recently we see that altcoins' value first react inversely to Bitcoin's rise with a following increase in values as optimism sets in and then again when Bitcoin decreases. Of course the less well-known coins are reacting differently with artificial bursts and declines everywhere and are not following the model I described above.
My view is that, as long as Bitcoin remains strong (irrelevant of its ups and downs) the well known altcoins will still fourish. Indeed, as Bitcoin is being replaced by other major coins as exchange currencies (Etherium, Monero and maybe a couple of others emerging) we may begin to see a much more balanced market.
Of course, nothing is predictable. Bitcoin has to take a dive sometime.
(I am not an expert. This is NOT investment advice.)
I agree that alt-coins will continue to rise and Bitcoin will lose market cap dominance over time. I just don't see a 20x run-up in coins like Ripple over a few short weeks to sustainable over the near-term, so a correction is inevitable.
As I think I once said in one of my other posts on Steemit, I disapprove of the word "correction" in reference to cryptocurrency markets. A correction, in my view, usually applies to things which actually have intrinsic value - for example, shares in a company have real value and if they are beings sold for more than the company is worth, then a correction is necessary. Potential values also plays a part, though, and as Ripple is (more of) a 'professional' cryptocurrency, I suppose "correction" is actually an apt word to use.
Correction merely refers to a decline in price -- at least that's how I'm using it here. Intrinsic value has nothing to do with it.
Hi Jon,
Interesting interpretation! Lite coin is still running higher though, not seen the decline yet. That said I do expect a pull back soon
Agreed. Litecoin seems to have better fundamentals than most other alt-coins. The fact that Ripple was number 2 in market cap makes no sense because it is a pre-mine.
I was expecting Lite coin to pull back a lot, but it hasn't. My problem is that I just don't see it a replacement for Bitcoin and other roles and advancements being taken by other altcoins.
Hi David, it appears that the potential 'Dead Cat Bounce' might actually be applicable to Lite Coin now too...Wondering whether to cash out of it ??
I wish I knew.
love the chart. very intuitive. i think alt coins will always be there as there is always going to be some group that tries to make another BTC STEEM Etherium or LiteCoin. however i think the bus has stopped and we now have an adequate number if different coins. i think STEEMIT in particular will be extremely successful over the long term with its ability to make money rather than mine coins with the option of buying in. bitcoin to me has made itself so valuable that it will be hard for the average user to use to make purchases due to the value of each coin. i think for those who want anonymity there is an option. but STEEMIT will be the ling term winner as people around the world will see a platform that can and will replace social media websites and apps that are just that and STEEMIT is so much more. with the addition of a few key elements i think STEEMIT will take over YouTube, Facebook and Twitter and Instagram with little effort. just have to get new users over the hump of putting in an encryption key hahaha