Bitcoin Stalls As Altcoins Catch Up

Bitcoin remains inactive as daily range seems to be set at $15.4k-$15.7k. It’s altcoins’ time to shine as most DeFi tokens saw an uptick of 10%. The biggest winner is by far (YFI). At the time of writing, YFI has experienced a 24% gain in just one hour. It’s now up by 74% which is unreal. YFI was a token that suffered through the capital drain as bitcoin was regaining its dominance in the market. YFI hit a bottom of $7.7k, now it’s recovering as it finds itself at $15.5k. Just to put the situation into perspective, YFI had its $43k all-time-high just a few weeks ago on September 12th.

This pendulum swing is something that many of us expected. These types of movements in capital happens on the way up to new highs. First it’s bitcoin, then alts, then bitcoin, then alts. As new comers focus on bitcoin, veterans look for opportunity wherever it can be found. As mentioned before, my allocation strategy was geared towards altcoin for this reason.

Hopefully, this time we get a few more days experiencing the high, unlike last time when we only had a few hours. The chart below shows how quickly we went up and came down. It’s tough to believe how quickly this market moves due to the fact that we’ve been relatively stagnant for quite some time.

Price closing history by level Source: Messari

Let’s hope we see a bit of caution in the market, as opposed to reckless euphoria. It’s time like these where discipline comes into play. As investors get greedy, be fearful.

Fear and greed Source: Arcane Research

I personally believe that we still have some time to enjoy the ride due to institutional investors being a big part of this rally. In just one day, Grayscale added $500 million in new assets under management (AUM). Now they’re over $9 billion in total AUM.

Source: Grayscale

As for retail investors, it still seems like they’re not all in yet. According to google trends, “bitcoin price” has a worldwide barometer score of 10. That’s pretty freaking low compared to 93 recorded in December 2019, the peak of the rally. As time goes on the waiting period for everything elongates. For bull runs, consolidation periods, bear markets… everything. It’s best to be well positioned, have an exit strategy and let the market do its thing.

*Not Financial Advice.




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