The failing Altcoin Market
If you look at the prices on coinmarketcap you will see that things are much different than usual, things are no longer moving together as one whole market, many bitcoin currencies like bitcoin dark are doing great and shooting up, while Altcoins like dash are failing and collapsing, even Ethereum is currently under 200 dollars. Today I want to analyze and explain why this is and speculate about what will happen in the week and coming days.
The reason for this massive decline in Altcoins could be a number of things, but most likely its that people are putting as much money into bitcoin as possible, with the coming activation of SegWit, there is anticipation and people believe this will draw new investors into the market. Another possible reason for this Altcoin crash is that most Altcoins truly play almost no role in this market except to be faster than Bitcoin, however, with SegWit this is changing, meaning that coins like Ethereum, which while showing promise, is mainly being used for faster transactions which means that people who do this are beginning to believe in Bitcoin again.
What will most likely happen in the coming days is that you will see this decline continue until after the activation of SegWit, after this decline many altcoins will probably lose a lot of hold in the market and many may even become obsolete. However, this new age may also bring projects forward whose goal is more than to be a testnet for Bitcoin. Coins that have project goals may be recognized, like Maidsafecoin or Siacoin.
So if you are holding any Altcoins right now you may want to HODL for now, or atleast until the activation of SegWit, secure your funds and make sure you have some Bitcoin, thanks for reading, don't forget to upvote.
We have definitely seen this behavior in the past during Bitcoin moves higher. I like to think of it as the vacuum effect a Tsunami has prior to the water coming into land, it sucks all the water out to sea. In the same way, the alt coin money gets sucked into Bitcoin, but then afterwards comes raging back even stronger!
Oh ya, you know I took advantage of this little altcoin sale. Its a flash sale, Everything must go!
Great analogy!
Great analogy indeed!
What are your opinions on which cryptos will be surging back strongest?
I'm thinking ETH could see a nice rally from the resulting flood coming back to alts - considering it appears to be in pretty undervalued territory at the moment.
I do like ETH here especially as it has been hit hard lately with bad press (ie. hacks, rumors) I'll be posting my Top 10 for this week soon!
I think the big ones will be ethereum, bitconnect tokens, and maybe golem because those are ones with real projects behind them, I don't think that there is much hope in coins that just survive for being fast, like dash or litecoin. Those coins are testnets for bitcoin, they will rise when there is a debate and new technology needs to be added to bitcoin.
good post
Thanks mate, I wouldn't mind an upvote if you liked it.
I think everyone just selling their alt coins so they can profit off the hard fork. After august 1st alt coins will probably go up again.
If altcoins will go up after the fork why would you sell them? Wouldn't that be incentive to buy more and wait till after the forkm
I wouldn't go so far as to call it "failing," but people are clearly pulling out money from altcoins to take advantage of the Bitcoin split in the short term. It remains to be see which altcoins people think are relevant after Segwit.
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