Altcoin Season Imminent After Taking it ‘On the Chin’ Since March – Next Crypto to Watch?
RealVision’s Chief Crypto Analyst, Jamie Coutts, believes that an altcoin season might be imminent. He points out that altcoins have been trading lower since Bitcoin reached its all-time high in March.
The Bitcoin price hit an all-time high of $73,750.07 on March 14th, but it has slumped over 10% since then to $66,200.05.
In a recent X post, Coutts noted that “smaller-cap crypto assets have been taking it on the chin since the March high of this year.”
Market Update: Smaller cap #crypto assets have been taking it on the chin since March high of this year. The past 3 months have seen the Top 200 equal weight index fall 33% vs. the Market Cap index, which is down around 12%.
This is the breakdown of the 3-month sector returns… pic.twitter.com/npHS2BPoOl
— Jamie Coutts CMT (@Jamie1Coutts) June 13, 2024
Coutts referenced data from Bitformance indicating that over the past 3 months, the Top 200 Equal Weight Index, which assigns weight equally to cryptocurrencies irrespective of market cap, fell by 33%.
This contrasted with the Market Cap Index, which declined by 12%, weighting cryptocurrencies based on their market capitalization.
This decline underscores weaker performance among smaller cryptocurrencies compared to those dominating the market cap index.
More recent Bitformance data also reveals a notable shift. The percentage of altcoins in the top 200 Marketcap-Weighted Index with a higher 90-day return than BTC dropped significantly from 49% to 10% since March 14th.
This indicates that an altcoin season is currently distant. Despite this, Coutts believes altcoins may be gearing up to present “some opportunities.”
“If this is a regular mid-cycle correction we are experiencing, which I believe is likely, then expect some opportunities to be had in the mid and small caps once the market settles.”
This “settling” was supported in a recent Bloomberg interview with Coinshares Advisor Meltem Demirors, citing recent market activity to be an indication of a “sideways summer” as the market consolidates.
we had our winter of despair, a wild spring, and now it's sideways summer.
price drives narrative. narrative drives sentiment. sentiment drives flows. flows drive price. and so it goes. always a pleasure to chat w @sonalibasak @business https://t.co/WzuKTL1Pk3
— Meltem Demirors (@Melt_Dem) June 18, 2024
This follows the uncertainty generated by the US Federal Reserve’s hawkish stance on inflation.
Keep Your Eye On AI For Altcoin Season
Notably, in a reply from an X user inquiring about AI crypto’s place in a potential altcoin season, Coutts proclaimed optimism, saying, “ I do genuinely see opportunity there.”
Its treacherous waters given some of the incentives and lack of data (ironically) in crypto for deAI plays, but I do genuinely see opportunity there. Still working through an asset selection approach, though
— Jamie Coutts CMT (@Jamie1Coutts) June 13, 2024
The inquiry questioned when AI hype will fully permeate into crypto. This follows Nvidia’s impressive Q1 earnings report, which caused AI-related stocks to surge. However, AI crypto did not mirror this trend, contrary to expectations among crypto traders.
The user also noted that high-potential AI projects seemed to be misunderstood or under-allocated relative to other non-AI crypto projects & traditional AI-related assets.
Despite this optimism, Coutts has not named any particular opportunities pre-altcoin season. He claims that he is “still working through an asset selection approach.”
This New Low-Cap Gem Captures The AI Spotlight
Given that many prominent AI projects have already achieved multi-billion dollar market caps, it’s uncertain whether significant gains are still possible going forward, even though these projects may still be undervalued compared to other AI assets.
Therefore, traders seeking faster and bigger returns may find a strategic advantage in exploring newer low-cap meme coins set for explosive growth.
Enter WienerAI ($WAI), a new meme coin and AI companion cited to become “every crypto trader’s Best Friend.”
The meme coin market is over-saturated with Shiba Inu-themed coins boasting little to no real utility. Something which may credit Weiner AI’s (WAI) recent success, raising over $6 million in its presale so far.
We've just raised $6M 🌭🚀
Thank you to our incredible community! Get ready for more exciting adventures with this little Wiener 💥🐾 pic.twitter.com/O6AdG6xrhE
— WienerAI (@WienerDogAI) June 18, 2024
Touted as a “Revolutionary AI Trading partner,” WienerAI is a digital companion that gives its owner user-friendly AI-enhanced trading advice, seamless swap functionality, and zero fees.
Around 20% of $WAI’s supply is for staking, and investors are currently earning a massive 188% APY, as per the project’s official website.
Follow the latest developments on Weiner AI’s X account.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
