The cryptocurrency market has been led by the Bitcoin price since the 14th of March when the U.S. Producer Price Index report was released. Bitcoin [BTC]The economic situation in, has seen a significant downturn.
Bitcoin is the first cryptocurrency and other altcoins such as Ethereum [ETH], Dogecoin [DOGE], Ripple [XRP]Then, Solana [SOL], experienced significant declines.
Bitcoin value dropped 6.80% from $73,000 at time of publication to just below $68,414 (as it was in a rising trend). It was a sudden change in the cryptocurrency landscape, triggered by concerns over inflation. financial markets.
Crypto visionary comments on this. Samson Mow said,
“I’m expecting alts to crash in the coming weeks.”
Further, he noted:
They’ve tracked Bitcoin gains after ETF approvals but they don’t have the daily inflows of $500M to 1B we do. It should be a clear indication that the gains they have made are not sustainable.
Predicting altcoin correction
Mow is renowned for his positive outlook and advocacy of a $1 million BTC valuation. He has also brought to light the durability of altcoin gains compared to Bitcoin’s consistency.
Mow raised concern about the low investment influx in altcoins as compared to Bitcoin by pointing out the large difference in the daily flows between Bitcoin ETFs.
According to him, altcoins’ gains are therefore inherently uncertain.
Mow has focused on the market capitalization of altcoins, such as Solana. He contrasted them with companies established like MicroStrategy (MSTR).
“Solana market cap is $73B, whereas $MSTR is $30B. That’s just nuts. Alts are overdue for a major correction.”
The juxtaposition of these two markets, according to him, shows an imbalance. He predicts an unusual scenario in which altcoins will experience a significant drop while Bitcoin rises, diverging away from its usual pattern.
Mow’s warning to cryptocurrency investors
Data from the Total 2 Index Altcoins’ market cap was at $1.177 billion, a 51.62 percent increase from the start of this year. Bitcoin’s dominance with over $1.3 trillion capitalization, and an increase of 61.61% in value, underlines Mow’s caution.
His warning encourages investors to carefully navigate the changing dynamics of the crypto market. His words, amid growing greed and speculation, highlight the risks inherent in chasing high gains in the alternative coin sector.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com