Altcoin Season Imminent After Facing Challenges Since March – Which Crypto Should You Keep an Eye On?
RealVision’s Chief Crypto Analyst, Jamie Coutts, suggests that an altcoin season might be just around the corner. He notes that altcoins have been experiencing a downward trend since Bitcoin reached its all-time high in March.
Back on March 14th, the price of Bitcoin soared to an unprecedented $73,750.07. However, it has since dropped by over 10% to $66,200.05.
In a recent post, Coutts highlights that “smaller-cap crypto assets have been facing challenges since the high point in March this year.”
Coutts refers to data from Bitformance, which reveals that over the past three months, the Top 200 Equal Weight Index, which gives equal weight to cryptocurrencies regardless of their market cap, has fallen by 33%.
This is in contrast to the Market Cap Index, which only declined by 12% and assigns weight to cryptocurrencies based on their market capitalization.
This decline indicates weaker performance among smaller cryptocurrencies in comparison to those dominating the market cap index.
Recent data from Bitformance also shows a significant shift. The percentage of altcoins in the top 200 Marketcap-Weighted Index with a higher 90-day return than BTC has dropped significantly from 49% to 10% since March 14th.
This suggests that an altcoin season is not currently in sight. However, Coutts believes that altcoins may soon present “some opportunities.”
This notion is supported by a recent Bloomberg interview with Coinshares Advisor Meltem Demirors, who characterizes the current market activity as a “sideways summer” as the market consolidates. This follows the uncertainty caused by the US Federal Reserve’s hawkish position on inflation.
Keep an eye on AI for the upcoming altcoin season
In response to a user’s query about the role of AI crypto in a potential altcoin season, Coutts expresses optimism, stating, “I genuinely see opportunity there.”
The user was curious about when AI hype will fully integrate into the crypto market. This question arises after Nvidia’s impressive Q1 earnings report, which led to a surge in AI-related stocks. However, AI crypto did not follow this trend as expected by crypto traders.
The user also notes that high-potential AI projects seem to be misunderstood or under-allocated compared to other non-AI crypto projects and traditional AI-related assets.
Despite Coutts’ optimism, he has not specified any particular opportunities before the altcoin season. He explains that he is still working on an asset selection approach.
A New Low-Cap Gem Shines the Spotlight on AI
Considering that many prominent AI projects have already achieved multi-billion dollar market caps, it remains uncertain whether significant gains are still possible in the future, even though these projects may still be undervalued compared to other AI assets.
Therefore, traders who seek faster and larger returns may find a strategic advantage in exploring newer low-cap meme coins that are poised for explosive growth.
Enter WienerAI ($WAI), a new meme coin and AI companion that is expected to become “every crypto trader’s Best Friend.”
The meme coin market is already saturated with Shiba Inu-themed coins that offer little to no real utility. This may explain the recent success of Weiner AI’s (WAI) presale, which has raised over $6 million so far.
Touted as a “Revolutionary AI Trading partner,” WienerAI is a digital companion that provides its owner with user-friendly AI-enhanced trading advice, seamless swap functionality, and zero fees.
Around 20% of $WAI’s supply is available for staking, and investors are currently earning an impressive 188% APY, according to the project’s official website.
Stay updated on the latest developments regarding Weiner AI through their X account.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes only and does not constitute investment advice. You could potentially lose all of your invested capital.
