Investing into Altcoins is the best thing to do. It might sound… — Teeka Tiwari — TG.ME

Investing into Altcoins is the best thing to do. It might sound weird, but it’s the best thing to do currently. They have lost 70% in their value against Bitcoin in the past three months, updates are getting delayed and the sentiment is super bearish. Some altcoins are in a three year bear market. Still. What’s happening and why is it the best thing to do? In this longread I’ll be discussing my view on why they are suffering and what’s likely going to come next. The reason why they are suffering can be provided in multiple variables and segments. It’s focused on Bitcoin, it’s focused outside of crypto and it’s solely focused on Ethereum and the way liquidity moves through the markets. First of all, the altcoin cycle and different phases haven’t really changed. First, Bitcoin needs to move, then Ethereum needs to move and then the large caps, mid caps and small caps will follow suit. Technically, that didn’t change and that wasn’t different during this cycle either. During October 2023 – January 2024, the markets have been seeing a substantial uptick in the Bitcoin valuations of many of those altcoins, hand-in-hand with Bitcoin showing momentum due to the fact that the hype surrounding the ETF started to accelerate. However, this reversed entirely from the moment of the launch of the Spot Bitcoin ETF due to a simple reason. Hype. Crypto-native people have seen the approval of the Bitcoin ETF and saw the liquidity influx from traditional finance into Bitcoin. That’s where you could get the return! And yes, Bitcoin has ran from $40K to $73K in a matter of a few months, so that’s where the return was made for the most part, through which investors and speculators decided to swap their altcoins to Bitcoin to make a larger return in USD values. That’s the first reason of the current weakness of altcoins and why this strength didn’t continue. The altcoin cycles haven’t changed at all, it’s still here. Just slightly different. Secondly, Ethereum has been suffering entirely. The ETF isn’t looking very positive in a sense that the chances of an approval are simply not as positive as we expected it to be and likely, once it will be approved, there won’t be a significant influx either. However, Ethereum is a representative for the rest of the markets. If Ethereum isn’t classified as a security, it’s a kickstart for a large scope of projects to not be called one either. The start of the strength on the altcoin markets. The chances of the Ethereum ETF is close to zero. At this point in time, without information from the SEC on what they classify as a potential security. The upcoming events are important to keep an eye on: - Ethereum ETF approval/delay/denial on the 23rd/24th of May for 2 ETFs. Invesco, which had a deadline on May 7th, was delayed by 60 days. Not entirely a negative response, as they could have easily declined it. - Ethereum foundation court case, and information from the SEC on the Ethereum ETF applications on what’s the part that they think is a security or not. Is it the ICO at the start? Staking? Both? - FIT21 bill to be voted on in the House in the U.S. A bipartisan bill that has been worked on for multiple years and finally is getting a vote in the House, which should provide a regulatory framework for crypto. Voting is going to be in May / beginning June. - XRP lawsuit is going to be ending really soon, as the final deadlines for feedback have been provided and a conclusion needs to be drawn from this and the final sentence. It can flip both sides, but the markets are pricing in the worst case scenario at this point, where the markets are expecting a denial for the Ethereum ETF. That’s fully understandable. However, I’d like to make the comparison with the crash of FTX. In the months prior, markets haven’t been moving at all and where pushed downwards. Are you telling me that insiders didn’t know about the trouble within the FTX ecosystem? I bet they did and I bet they kept prices low.