As 2024 draws to a close, Bitcoin's market share has gradually risen to close to 60%, but the price has also gradually stagnated. Many traders are beginning to believe that it is time to shift their investment strategy from accumulating Bitcoin to Altcoins.
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ToggleMarket sentiment shifts towards Altcoins
According to a report by Cointelegraph, well-known cryptocurrency trader Dyme posted on X (formerly Twitter) on December 27th, stating:
"At the current stage, Altcoins offer a more ideal risk/reward (R/R) ratio compared to Bitcoin. The time for dollar-cost averaging (DCA) into Bitcoin has passed, and it is not suitable to continue this operation in the next 1.5 years."
According to a survey released by Kraken on October 7th, about 83.5% of cryptocurrency investors have used the dollar-cost averaging (DCA) strategy, and 59% of investors still use it as their primary cryptocurrency purchase method. However, Dyme's suggestion is only for investors who have not yet entered the market or plan to increase their positions. For existing Bitcoin holders, Dyme suggests continuing to hold and ride the trend, but with the premise that the market continues to maintain the current trend.
Expert opinion: Altcoins may be on the verge of glory
Tyler Durdan, the CEO of Soap Capital, also expressed a similar view in a tweet on December 26th, claiming that "the next rally will be glorious." And Adam Cochran, a partner at Cinneamhain Ventures, believes that the opportunity for Bitcoin to become a strategic reserve asset for the United States is slim, which means that Bitcoin is unlikely to outperform other market assets in the short term. He pointed out:
"Other assets will benefit from regulatory clarity, new project launches, and a new ICO frenzy, which will draw a lot of liquidity away from the Bitcoin market."
Bitcoin's potential remains enormous
However, some observers, including Kristin Smith, the Executive Director of the Blockchain Association, believe that Bitcoin's momentum is far from over, and even at the current price level, there is still upside potential for new investors. In an interview with CNBC on December 26th, Kristin Smith predicted:
"Bitcoin will reach $200,000 before it reaches $50,000."
This means that Bitcoin will rise about 108% from its current price. At the same time, Kristin Smith also added that the incoming Trump administration, along with the changing policy attitude of the US top leadership, as well as more and more financial advisors starting to recommend Bitcoin investment to their clients, will trigger a new wave of capital inflow into the Bitcoin market.
"As more and more retail financial advisors start recommending Bitcoin to their clients, we will see more capital flow into Bitcoin."
"People are now choosing to hold more Bitcoin, not less."
In addition, cryptocurrency analyst Darkfost recently pointed out that $95,000 is a "suitable area to execute a dollar-cost averaging (DCA) strategy."
