Altcoins
Expert Predicts 98% of Altcoins Have Peaked for Current Cycle
In the fast-paced world of cryptocurrency, Andrew Kang, the founder of Mechanism Capital, points out a striking perspective related to the prospects that await altcoins. According to Kang, more than 98% of altcoins have probably already reached the top of this cycle, while only a few could reach new highs during the fourth quarter of 2024 or the first quarter of 2025.
Interestingly, he noted that meme coins have a good chance of being among the few to reach new highs, albeit in a highly competitive and oversaturated market.
Kang highlighted a critical mistake often seen among cryptocurrency investors: buying too early after a market downtrend. He noted that corrections that follow major breakouts in market structure tend to be deeper and longer than most people expect.
It’s not enough for a few to turn bearish, with prices just 10% below Bitcoin’s highs; substantial selling pressure and a widespread exit from the market are needed for prices to fall significantly. Kang indicated that the optimal time to invest for the next cycle is when a widespread sell-off occurs, the market experiences a mass exodus, and there is a pervasive sentiment that questions the very future of crypto.
The Evolution of Bitcoin and the Fate of Altcoins
One comment from observer Buhlaque suggested that Kang’s ideas implied that the current cycle was essentially over, making any buying in the near future pointless. Kang’s response largely confirmed this sentiment, reiterating his belief that most altcoins have already reached their zenith for this cycle.
He remained cautiously optimistic, however, about a handful of plays that could reverse the trend in the near future. shared his views on Bitcoin, suggesting that it is becoming a “supercyclical” asset. This transformation sees Bitcoin retaining the characteristics of previous cycles while increasingly behaving like a mature macroeconomic asset.
When asked about meme coins, Kang highlighted their great potential. In contrast to the sheer number of meme coins, hundreds of thousands are in circulation, he added that succeeding in this space requires extreme selectivity. This is part of their investment philosophy, where timing and careful selection are key to weathering the unpredictable and volatile crypto market.
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