Prominent crypto analyst Miles Deutscher is urging calm amidst concerns about altcoin underperformance in the current market cycle. Deutscher, citing a variety of data points, argues that we are still early in the cycle for altcoins, despite the strong performance of Bitcoin (BTC).
Retail Not In Yet: Alts Underperform Bitcoin
Deutscher’s analysis highlights a key disconnect: while Bitcoin is nearing its all-time highs, altcoins (cryptocurrencies other than Bitcoin) have significantly lagged behind. This is supported by his observation that the ratio of the total market cap excluding the top 10 coins (representing altcoins) to Bitcoin (OTHERS/BTC) is currently lower than it was in October 2023.
Deutscher points to the lack of a strong narrative driving the altcoin market as a whole, unlike the spot ETF narrative that propelled Bitcoin. Additionally, the analyst emphasizes the headwinds faced by altcoins due to the rapid launch of new tokens and the resulting dilution. He highlights that nearly 1 million new crypto tokens were created in May alone, putting immense pressure on the market.
Altcoin Rally Incoming, But When?
Despite the current struggles, Deutscher believes an altcoin rally is still on the horizon. He acknowledges the uneven distribution of returns this cycle, with specific narratives like Meme coins, AI, and Real World Assets (RWA) outperforming significantly. Historically, altcoins have peaked around 546 days after a Bitcoin halving, suggesting a potential peak in October 2025. However, Deutscher expects an earlier peak due to factors like cycle acceleration.
Patience and Selective Investment Key
Deutscher emphasizes the importance of patience for altcoin investors, arguing that the first half of the cycle typically favors Bitcoin. However, he cautions that not all altcoins will participate in the eventual rally due to dilution. Selective investment in the right narratives will be crucial for success, with Deutscher promising to reveal his top picks in the coming weeks.
Also Read: Bitcoin Price Slumps As ETF Outflows Signal Investor Caution
Overall, Deutscher’s analysis offers valuable insights for crypto investors. While altcoins may be lagging behind currently, understanding the market dynamics and focusing on strong narratives can help investors prepare for the next wave of altcoin growth.
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