A prominent crypto trader has pointed out that the TOTAL3 market capitalization must rise by approximately 16% before the dreaded “euphoria” phase of the altcoin market can commence. Until this threshold is achieved, we might see a continuation of the current choppy market conditions.
According to Daan Crypto Trades, a well-known pseudonymous trader, the euphoric phase is expected to kick in once the TOTAL3, which encompasses the market cap of all cryptocurrencies except Bitcoin (BTC) and Ether (ETH), exceeds its previous all-time high of $1.13 trillion. Currently, the TOTAL3 stands at around $962.78 billion, reflecting a significant increase of approximately 91.45% since the start of the new year.
While the market continues to hover between $840 billion and $1.1 trillion, we can expect fluctuations to persist. Daan noted, “As long as this trades between ~$840B and ~$1.1T, I think it will be choppy.” This ongoing volatility could be attributed to a shift in trader behavior, with many adopting a short-term outlook unlike previous cycles, making it increasingly difficult to predict market movements.
- Bitget Token (BGB)
- Virtuals Protocol (VIRTUAL)
- Pudgy Penguins (PENGU)
– 80.65% rise
– 42.30% rise
– 31.63% rise
Recent data from CoinMarketCap highlights the top gainers among the top 100 cryptocurrencies over the past week, with altcoins like Bitget Token showing impressive growth. With Bitcoin’s dominance returning to nearly 60% amidst a stall in price over the last few days of 2024, traders are increasingly convinced that the time might be ripe to shift their strategies towards altcoins.
The sentiment is echoed by another trader, Dyme, who argues that for now, altcoins present a more appealing risk-reward profile compared to Bitcoin. As markets continue to evolve, it appears that the days of simply DCA’ing into Bitcoin may be behind us for the next one and a half years.
As the cryptocurrency landscape transforms, many experts are monitoring scenarios where significant breakouts can become prevalent. However, it is essential for investors to remain cautious in this fluid market where volatility reigns supreme.
