Crypto News

An Accurate Bitcoin Analyst Expects a “Large” Correction in Altcoins

Ethereum price

This may sound like a broken record but it’s been a strong year thus far for altcoins compared to Bitcoin. Just look at the chart below, which shows that since the start of the year, BTC has underperformed many altcoins.
BTC vs. altcoins Tron, Ethereum, Cardano, and since the start of 2020. Chart from
Yet an analyst is expecting a strong correction in the altcoin market over the coming months, echoing the sentiment of many commentators.
Altcoins May Plunge Against Bitcoin, Analyst Warns
According to the trader that accurately predicted that Bitcoin would bottom 2019’s bear trend at $6,400, altcoins could see a “large correction.”
He shared the chart below on July 4th, showing that Bitcoin dominance — the percentage of the crypto market made up of BTC —  could hit 76% in 2020. That would result in a massive correction in the altcoin industry, with most likely falling by ~30% or more.
Bitcoin dominance chart and analysis shared by trader “Dave the Wave” (@davthewave on Twitter). Chart from
The analyst who shared the chart above isn’t the only current bear on altcoins.  Jason Calacanis, a prominent angel investor well known for investing in Uber, Robinhood, and Trello. He said late last month:
“Historically, 99% of crypto projects are garbage run by unqualified idiots, delusional but below average founders or grifters… the 1% that are not, could change the world. I’m waiting for that 1% to deliver their product so I can talk to their customers. you got customers?”
Prominent Crypto Fund Begs to Differ
Despite the sentiment against altcoins as investments, a prominent industry fund is still optimistic about digital assets aside from Bitcoin.
Pantera Capital, one of the earliest blockchain-centric funds and the earliest in the U.S., released its June report two weeks ago.
In it, company CIOs Dan Morehead and Joey Krug said that while they see upside in Bitcoin, they expect lots of value to accrue in altcoins.
“With proper selection, one can outperform bitcoin with a diversified portfolio including both large caps like bitcoin and ethereum and small to mid-cap alts even in the early innings of a bull market.”
The duo said that fundamentally speaking, the crypto ecosystem has “matured over the past three years,” separating the “wheat from the chaff.”
What they see as “wheat” is “non-debaseable store-of-value and decentralized finance.” Morehead and Krug explained further:
“We’re also focused on protocols that are enabling real world financial use cases and believe that most value will accrue to these assets on a long-term basis compared to utility/payment tokens.”
As an aside, the company’s outlook on Bitcoin is rather bullish.
They wrote in a separate letter earlier this year that BTC is likely to hit a new all-time high in 2020 or by early-2021.
The predicate of this optimism, according to them, is the fact that central banks are now printing more money than ever before. With BTC touting a fixed supply cap of 21 million coins, it stands to greatly benefit from an injection of literally trillions of dollars into the world economy.
Featured Image from Shutterstock
Price tags:
Charts from
An Accurate Bitcoin Analyst Expects a “Large” Correction in Altcoins

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Write a Comment

Related Crypto News

Monero’s Hashrate Experienced Its Largest Single Day Gains Ever
Monero has experienced its biggest single day gain in hashrate since its creation back in 2014. August 6, Monero...
Bitcoin Plunges Under Pivotal $11.5k Support: What Do Analysts Think Is Next?
Bitcoin is slipping lower after peaking at $11,950 just the other day. This marked the second major rejection at...
Price Analysis 8/7: BTC, ETH, XRP, BCH, BSV, LTC, ADA, LINK, BNB, CRO
Bitcoin and altcoins might consolidate or correct marginally for a few days before a possible breakout to the upside....
California’s Attorney General Warns People to Be Wary of Crypto Scams
California authorities recently came out with a fresh cautionary statement on crypto crime. Xavier Becerra, California’s attorney general, recently...
California’s Attorney General Warns People to Be Wary of Crypto Scams
California authorities recently came out with a fresh cautionary statement on crypto crime. Xavier Becerra, California’s attorney general, recently...
German Authorities Confiscate $30 Million in Bitcoin From Pirate Movie Site
German authorities, with the help of the U.S. Federal Bureau of Investigation (FBI), have confiscated about $30 million in...

Featured Crypto News

BTC Averages Over 1 Million Active Addresses as ETH Transaction Fees Hit $2M Daily
Bitcoin averaged over a million daily active addresses in the past week for the first time since January 2018....
Two Macro Calls That Could Propel Bitcoin to $14,000 This Year
Bitcoin may hit $14,000 in the coming quarter. The analogy appears out of two extremely bullish calls made for...
Investors Dollar-Cost Averaging Bitcoin Since 2017 Made a 61.8% Return
Data shows investors who dollar-cost averaged into Bitcoin even since the $20,000 peak are profitable. Researchers at Coin Metrics...
Grayscale Investments’ Ethereum Trust Filed With the SEC to Obtain Reporting Status
The digital currency asset manager Grayscale told investors on Thursday that the firm has publicly filed a Registration Statement...
This Bitcoin Metric Just Dropped 4%—And It’s Bullish For The Market
Bitcoin has rallied by approximately 25% over the past two weeks as Ethereum has wrested the market higher. The...
Bitcoin Price Climbs to $11,200, But Three Factors Hint at a Pullback
The price of Bitcoin spikes to $11,200 but three key factors suggest that a short-term pullback is likely as...