According to data from TradingView.com, after reaching 68%, the dominance of Bitcoin – the percentage of the crypto market made up of BTC – fell to 64%. That’s a 4% drop which represents billions in this multi-billion dollar asset class.
This move was spearheaded by largely fundamental rallies in a number of large-cap altcoins, such as Chainlink, which has recently received an influx of positive news about its adoption, and Tezos, whose foundation has recently confirmed to have a solid track record. who should be able to weather any economic recession or downturn in the crypto market.
A prominent crypto trader, however, begins to deleverage his altcoin positions, quoting the fact that there are “red flags” appearing on this side of the Bitcoin market.
This Crypto Trader is not convinced of Altcoins: here’s why
In a recent Twitter feed, a crypto trader with the nickname “Pentoshi” announced that it will reduce its exposure to altcoins by 75% for the foreseeable future, noting that it intends to focus on Bitcoin to move forward .
He explained that despite the strength seen in many altcoins in the past few weeks, he thought it was unwise to invest in non-Bitcoin assets so close to half, which could increase rapidly. the volatility of the BTC. This volatility, he explained, will lead to “alts [getting] rekt. ”
Pentoshi continued that according to his way of seeing things, altcoins are always a “game of musical chairs”, because the reasons for which they rally, he writes, are all based on “red flags” as opposed to fundamentals legitimate:
“The reason the alt pumps are not convincing is that they followed the same patterns. IEO, interoperability, privacy pieces moving together. It is coordinated as it has been for the past 3 years instead of all the ships going together. ”
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He is not the only one
Pentoshi is far from the only reluctant investor to deal with altcoins in this environment.
According to previous NewsBTC reports, Dan Morehead – a former Wall Street trader who became head of Pantera Capital, one of the first crypto funds – wrote in his March bulletin that Bitcoin “will likely outperform other tokens for a while time, “explaining that this is one of the cryptographic projects that are rooted and not dependent on funding per se:
This is a project that has already been built, it works, it has an 11-year track record. Many new blockchain and smart contract projects are still in development and could be asked to raise funds to complete their development.
He further explained that “there is usually a quality drain” in bear markets which see money flowing to the safest and most established asset in an asset class. In the case of crypto, it’s Bitcoin.
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Photo by Laura Lee Moreau on Unsplash