Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
Viktor, a pseudonymous researcher focused on decentralized finance, recently shared his thoughts on the potential for altcoins to outperform Bitcoin (CRYPTO: BTC) in the current market.
What Happened: In his latest tweet, the researcher noted that altcoins have been performing better than Bitcoin during the recent market downturn.
He proposed two possible scenarios: altcoins could suffer a significant drop in the next downward move, or they might not have many sellers left relative to Bitcoin due to the April 12-13 liquidation cascades.
Is this the time to buy altcoins ?I think everybody noticed that altcoins have been performing better than $BTC during the recent dump.
There are 2 main options now :
1) Altcoins are just lagging and will be giga rekt on a next move down
2) There are not many sellers left… pic.twitter.com/zMnTVEvaX7
— VIKTOR (@thedefivillain) May 2, 2024
Coinglass data indicates that Bitcoin’s long liquidations on April 13 peaked at a multi-month high of $261.1 million. Citing these dumps as evidence, he leans towards the second scenario.
He observed that while Bitcoin was only slightly down from the top, some altcoins had already dropped by 50%. This, he suggested, indicated that the risk-reward was in favor of altcoins versus Bitcoin, especially for those who entered close to the April 13 bottom of $65,000.
Also Read: Bitcoin Headed For A ‘W-Shaped Reversal,’ Says Crypto Expert, Who Sees Altseason ‘Around The Corner’
Why It Matters: Viktor also drew parallels to the market dumps in May and June 2022, where altcoins were severely impacted during the Luna collapse in May but then outperformed Bitcoin for nearly three months following the 3AC/Celsius collapse in June.
"What’s more, June 2022 would have been the bottom if it wasn’t for FTX," he notes.
While the overall market health depends on Bitcoin’s performance, Viktor sees the current $57,000 zone as a potential bottom for the crypto king, given the likelihood of investors front-running the $52,000 support level.
In another tweet, on May 2, VIKTOR notes the highest volume of coins on Bybit perpetual. While the top three are Bitcoin, Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL), the list is followed by Pepe (CRYPTO: PEPE), Dogecoin (CRYPTO: DOGE), and Dogwifhat (CRYPTO: WIF), reporting the largest increases of 14%, 4%, and 15%, respectively.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Is Bitcoin’s Fall Over? Top Crypto Analyst Says ‘Altcoins Are Going To Take Over Until…’
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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