The day that FTX collapsed, a correction took place across the board… — Teeka Tiwari — TG.ME

The day that FTX collapsed, a correction took place across the board and it marked the cycle low. You could arguably say the same about the current price action of Ethereum approaching the ETF. The markets are pricing in the worst à a denial and the clarification that Ethereum is a security. If that news comes out; it’s fully expected. It’s there. Now what? A setback, or not? This is the primarily reason that we’ve not been seeing a rotation back from Bitcoin to altcoins, as the sentiment surrounding altcoins is super negative at this point in time. It’s being fueled by negative news, while there’s also a lot of positive news taking place, which is simply not getting the spotlight at this point. After the strength of Bitcoin, the halving that took place and the slow unwind of the hype of the ETF (inflows were stalling at some point in April and the Dollar kept continuing its strength as Powell suggested that there won’t be any rate cuts for the entire year), it resulted into a rotation from Bitcoin towards cash. Not altcoins. However, we’re on the point that the rotation is actually taking place from cash and Bitcoin towards altcoins. This is the point in time, the worst is priced in, investors and speculators might start to see that there’s a huge opportunity cost in having altcoins rather than Bitcoin and that’s where the tables start to turn. Next weeks are going to be important, as it will give a significant intel on what Ethereum will be classified with from the standpoint of the SEC. I don’t think it’s going to be as bad as most people suggest it will be. Just like the ETF on Bitcoin wasn’t as positive as most people expected it to be in the short-term. From this aspect, the altcoin cycles haven’t adjusted. They are still here. Bitcoin did move first, but captured the momentum substantially due to the launch of the Spot Bitcoin ETF and the huge amount of influx coming into the ETF. That’s fine. From that point, you would expect that the rotation to altcoins was taking place. It didn’t. It’s delayed and it starts to happen. Once Ethereum starts to show momentum, it’s the time that altcoins are providing an even larger return. That’s the beta of the markets. Altcoins have a significantly large Beta in your investment thesis, that’s completely right, as they do have this on the downside as well. They have dropped by 70% in the past three months, Bitcoin is only down 10-15%. Part of the game. On the other hand, from October ’23 till January/February ’24 altcoins have been going up by, sometimes, even 1,000%. Incredible performance. At this point in time and the likely amount of adoption, hype and continuation, it might be expected that we’ll see the same returns in the next six months. Especially once Ethereum is going to be waking up from it’s sleep. Coming back to the title. Investments need to be made during the periods of the least certainty. Why? That’s where the highest amount of opportunity cost can be made. It’s always like that. If you feel super uncertain about buying a particular asset and the whole sentiment is like that, usually it’s the best period to do it. Remember the start of 2020 with COVID-19? Yes, that’s when nobody was thinking about Bitcoin and Bitcoin crashed to $3,700. It was the best moment of the past six years to be buying Bitcoin. Lowest confidence à highest chances. It’s the same for altcoins. The time is now.