Altcoins To Capture Market Dominance This Bull Cycle, According to Crypto Analyst Nicholas Merten – Here’s Why
Crypto analyst Nicholas Merten says altcoins may be on the verge of taking a huge portion of the digital asset market.
In an interview with fellow crypto analyst Scott Melker, Merten says he has his eye on altcoin dominance, which compares the market cap of the entire altcoin market to that of Bitcoin. He says the metric is a good gauge for the amount of risk that crypto investors are willing to take in the market.
At time of writing, altcoin dominance is at 58%. Merten says he expects the metric to significantly grow this cycle.
“I think we’re going all the way to 75% in this cycle. Last time around… we topped out at a very similar level in around April-May in 2018… A lot of people think we’re going to top at the same range here… But there are always new projects coming in… There’s an infinite amount of altcoins that can exist…
What we can see now, is that there’s an infinite creation of altcoins and an inevitable reality. And I think we have to face that is just based and rooted in logic is that altcoins are going to capture more of that dominance.”
Merten, who predicts an extended market cycle that lasts late into 2022, says that he sees a scenario where the crypto bull run finishes off with altcoin dominance springing up to new highs.
As for Bitcoin, the analyst has previously given out slightly more conservative predictions for BTC’s bull run. He says that the sheer size of Bitcoin requires significantly more monetary energy to move the price of the leading crypto asset.
“The problem is that as you grow bigger in price, you need excessively more liquidity. You’re going to need, really those institutional buyers, the real billion-dollar hedge fund managers starting to make big bets on crypto, and we’ve seen the early signs of that… But I think we need that kick-off rally first, after a solid period of consolidation before you start to see them diving onboard.”
Back to the list