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Murad Mahmudov, a prominent financial analyst, argued that there is little chance of a new altcoin season.
According to cryptocurrency media outlet YouTube, Mahmudov, who has 106,500 followers, said on the 16th (local time) through “It is only a short-term price surge of a trendy altcoin that briefly captures the attention of the cryptocurrency community, where funds quickly move from one project to another,” he pointed out.
Given that Americans are more cautious with their spending in 2021, they are unlikely to waste their cash on risky alternative cryptocurrencies, Mahmudov said.
The media said, "According to recent data from the Federal Reserve Bank of San Francisco, Americans have exhausted most of the savings they had increased during the pandemic. Savings surged from March 2020 to August 2021 as consumption plummeted, but most of them have now been exhausted." According to recent performance reports from large companies, consumers are managing their budgets carefully and are less likely to spend money on risky altcoins.”
Mahmudov also pointed out the problem of oversupply of altcoins.
The media said, "The number and market value of altcoins continue to increase with the issuance of new tokens. When comparing the market in 2017 and the current market, the market size at that time was much smaller and large profits could be made with small capital. On the other hand, currently “It is becoming easier to create new tokens, which is causing an oversupply phenomenon,” he explained.
On the other hand, Andrei Grachev, co-founder of DWF Labs, a cryptocurrency market making company, said, “Altcoin dominance has reached a similar level to early 2021 (14.45%). Also, Google search volume has been decreasing since March 2024. Bit A stable price of the coin (BTC) is important from a trust perspective, but it cannot rise 50 times from now, but it is possible for altcoins to stabilize in the coming months.” Posted.
Famous cryptocurrency analyst Michaël van de Poppe also recently analyzed through X, “Now is the last opportunity to buy altcoins at low prices.”
He said, "After the Bitcoin halving, some cryptocurrencies such as Solana (SOL) hit record highs, but most altcoins were quiet. The Ethereum (ETH) spot ETF is likely to begin trading at the end of this month or early July, and thus Accordingly, most venture capital (VC) funds and investments are being made in the ETH ecosystem, and while BTC is hitting an all-time high, the price of ETH is 20-30% lower than the 2021 peak. “Altcoins are 50-80% lower, so we decided to take more risk in our future portfolio and will buy high-potential altcoins,” he emphasized.
