 ▲ Virtual asset trading |
Daily issues of cryptocurrency media outlets reported popular trader Jason Pizzino's altcoin market outlook.
Pizino presents a TOTAL3 chart showing the market capitalization of altcoins excluding Bitcoin (BTC) and Ethereum (ETH) through its YouTube channel with 329,000 subscribers, as of the end of 2018. He explained that asset accumulation took place over 26 months during the last cycle from to early 2021.
Physino mentioned the possibility that the Total 3 indicators will record the same pattern in this cycle, and diagnosed that an explosive upward trend will be recorded in a few months.
He mentioned that there is a possibility of reaching a new high in the fourth quarter of 2024 or the first quarter of 2025, and claimed, “We will be able to forget concerns about the weakness of altcoins in the fourth quarter of this year.”
In addition, he added that the total market capitalization of the altcoin market will fall to the Fibonacci 50% retracement line, which is equivalent to $400 billion, and then begin to rebound, reaching a new high by reaching $1 trillion in early 2025.
On the other hand, blockchain news website BeInCrypto noted that millions of newly issued altcoins since 2020 had a negative impact on the altcoin market weakness.
The media explained that in 2020, due to the cryptocurrency market craze, there was a large amount of venture capital investment in altcoin projects. The trend of altcoin projects raising large-scale investments continued in the first quarter of 2022, when venture capital funding reached an all-time high of $11.1 billion.
However, Will Clemente, co-founder of Reflexivity Research, pointed out that the large influx of venture capital funds has led to a rapid increase in altcoin projects with unsustainable and unstable finances.
He explained that the number of altcoins tripled between 2020 and 2022, but most were hit hard as they faced a bear market in the cryptocurrency market.
At the end of 2023, as market sentiment improved, new altcoins began to appear in droves again. The total number of new altcoins issued from 2020 to 2024 is estimated to be 2.52 million.
