Will there be an alt season in 2021?

0
98

Traditionally, the alt season has been the highlight at the end of nearly every Bitcoin price rally. In fact, on the back of Bitcoin’s recent performances, a rally in the price action of the market’s altcoins is much anticipated for the year 2021.

When Ethereum crossed its ATH recently, the market’s top-25 alts by market capitalization all rallied. However, the said rally was short-lived. On the contrary, Ethereum registered an extended price rally, going beyond $1,600 on the charts too. Interestingly, investing either in the market’s top-100 altcoins or in Bitcoin would give close results, closer than expected.

Source: eToro Report

As can be observed from the attached chart, investing in the market’s top-100 altcoins may give a better yield, when compared to Bitcoin. This is a significant conclusion, especially since Bitcoin tops the chart in risk-adjusted returns when compared to real estate, U.S stocks, precious metals, and emerging national currencies. In conclusion, the chart leads a trader to the question – Which altcoins do I need to buy, HODL, and trade, if my portfolio is to beat Bitcoin in terms of risk-adjusted returns? The answer, however, is not a simple one.

It is challenging to predict whether an altcoin will rally or whether it will be volatile in light of the fact that most alts’ market capitalization and liquidity are low. A better strategy could…

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here