As Bitcoin (BTC) and Ether (ETH), the second largest cryptocurrency by market cap, are heading towards their all-time highs, there is a comment that a major rise in the altcoin market is at the door.
On April 2, analyst Rekt Capital, who shared a market evaluation video on YouTube, argued that “the altcoin market is about to make history”.
Evaluating the total value of the altcoin market since 2014, the analyst said that the accelerated rise between 2017-2018 can be seen once again by 2021.
According to the analyst, the big altcoin rise started right now, even breaking a new record every day.
“Altcoins are already making history”
Graph of total altcoin market value. Source: YouTube / Rekt Capital
In his assessment, he emphasized that from 2014 to 2017, the total altcoin market value was progressing in a horizontal manner. The commentator, who said that the altcoin market value suddenly increased after the accumulation process that lasted about 1,092 days, said that the record was broken with 392 days of rising.
Prices, which declined after the peak seen in 2018, also pulled the altcoin market value back. However, as can be seen in the graph, it has been claimed that the increase has started again after the 1,134 days of accumulation between 2018-2021, just like in the 2014-2017 period.
According to the analyst’s statement, the increase in the value of the altcoin market, which began to be seen clearly in the first months of 2021, is a harbinger of greater price increases.
Dallas Mavericks’ partner billionaire Mark Cuban stated that he was excited about crypto money with the growth of decentralized finance (DeFi) and NFTs (non-fungible tokens). He said he broke it.
Cryptocurrency flow cycle
Analyst named Rekt Capital also clarified the movement of money circulating in the crypto money market. Saying that the starting point is usually Bitcoin, the analyst stated that when investors cannot get the profits they are aiming for, they turn to alternatives.
He said that investors who first converted fiat currencies to Bitcoin were alternatively tackling altcoins with the highest market value. He then argued that they invested in cryptocurrencies with an average market cap and ultimately low market cap.
He emphasized that this investment route is followed not only to generate high profits, but also to adjust the risk tolerance. He explained that the investor who makes a profit on Bitcoin is in a position to take more risks and is increasingly turning to high-risk assets. At the end of the cycle, he said that the money accumulated in altcoins first converted into Bitcoin and then into fiat currencies.
According to the analyst, the current period gives the first signs that the altcoin market is starting to rise. Time will tell whether there will be another parabolic rise between 2017 and 2018.
As reported by Cointelegraph, price targets for Ether are now higher than ever. The next target is at $ 2,600. Then $ 5,000 or even $ 10,000 is on target.
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