The data from altcoin markets reportedly spells a bullish summer for Bitcoin, as people dump everything in the name of the mighty BTC. The strong action in the boss crypto’s markets will mean increased interest from traditional finance and Wall Street. Altcoin traders fear missing the big price waves to come for BTC, thus we see mild dumpage across the top altcoins.
FOMO Dumping
However, if history is any lesson, what’s good for the Bitcoin is great for the altcoin. In no uncertain terms, I can say that if BTC reaches $20,000 this year or next, it’s reasonable to expect to see BCH do even better, and reach $1,000. You see, for BCH that’s a new price 400% higher than today; for Bitcoin it’s merely a doubling.
The dirty open secret of altcoin markets is that they’re largely denominated in BTC, which means that when Bitcoin makes gains, the price naturally rises. However, the market will correct itself, and that, plus sales to fund BTC purchases, is what we’ve seen recently.
But like I said above, dumpage on the altcoin seas means good tidings for the Bitcoin motherbase. It also spells an opportunity to pick up altcoins, as they get dumped in favor of BTC. Once BTC reaches a certain point, the money will begin to flow into altcoins again.
Thus, for my own personal strategy, it makes sense to keep and acquire altcoins as they struggle to maintain a reasonable price. Let others dump; buying the altcoin dip can be just as successful as buying Bitcoin in the run-up. Perhaps that’s arguable, but it’s what I’m going to do. Particularly XRP. Past bull runs have seen it get over $2. Bitcoin itself will probably only double in the near-term, which means that XRP will have to real gains of a few hundred percent to get there again. But I believe that it, and other cryptos with a lot of strong fiat market pairings, will break loose of the BTC cycle just like it has before.
The Altcoin Gambit
If not, it’s unlikely to lose in the bull market, long-term. The same can be said for the rest of the major altcoins. Everything from Ethereum to Tron has a fighting chance this time around. Perhaps the more interesting question is what forms of investment we’ll see in the space, and what new companies will grow out of renewed interest.
It might annoy some, the way I talk of a coming bull market as if it is set in stone. But whether it happens in a few months, or in a year, it is coming. The only question for you, dear reader, is where you stand when the chips begin stacking up.
The later you get in on these things, the harder it is to make money. Personally, I’m a long-term hodler of some cryptos, and an opportunist with others. It never hurts to have crypto to fall back on. In the modern-day, it’s relatively easy to cash out, if you have to, so holding some for the long-term, like a savings account, is a worthy investment.
Whatever happens, buying dips is always advisable. Large-cap cryptocurrencies will certainly rebound, whether it’s now or later, even if traders are flocking to the safety of BTC’s bull drums. So if anyone was to ask, it might be advisable to tell them: owning a diversified crypto portfolio is a good way to take advantage of all the coming opportunities, rather than just one (for example, Bitcoin).
