Analysts Warn for Altcoins: Altseason Is a Dream!

Analysts say altcoins are a 'relatively big' risk as the days of big returns are behind us. Markus Thielen, head of research at 10xResearch, agrees that there are "tactical opportunities" for altcoins. However, he notes that they did not have the big gains seen in previous cycles.

Markus Thielen: Tactical opportunities exist, but...

According to analysts, big gains are now less likely due to the weak narratives driving the crypto market. For this reason, altcoins are leaning towards the former high-risk, high-bounty theory. Markus Thielen, head of research at 10xResearch, said: "Tactical opportunities exist. "However, the era of 100x returns may be behind us." The market predicts a bull market for altcoins this year. Despite this, Thielen warns that "individual participation remains low, and several new projects have emerged that attract non-crypto native traders."

Thielen says that altcoin bull markets in the past have had "distinct characteristics" that have attracted more money, but this cycle has seen "tighter capital, evidenced by lower total value locked and a scarcity of venture capital investments." In this regard, Thielen added, "In the last cycle, the discourse that crypto would replace traditional financial systems was widely adopted, but the rhetoric of this cycle is more ephemeral and lacks significant support."

Michael van de Poppe: A portfolio that mainly includes altcoins is a big risk!

Earlier this week, Solana-based memecoin GameStop (GME) surged 2,727% as GameStop's stock price soared after trader Keith Gill posted a meme from his "Roaring Kitty" X account for the first time in nearly three years.

During the price increase of GameStop shares, GameStop briefly rose 2,727%. Source: CoinMarketCapMN Michael van de Poppe, founder of trading consultancy and popular analyst, weighed in on this topic. Poppe claimed that a portfolio that predominantly includes altcoins poses a "relatively large" risk. The analyst asked, "What is the downside of this bet? It's comparatively huge. As soon as I published the post, I experienced a fall of around 20% in total investment within 1-2 weeks." Despite the risk, van de Poppe recently revealed that he had switched to altcoins by selling all of his Bitcoin (BTC), claiming that he could "lose 50-80%."

Fabio Andreatta: It's doubtful that there will even be a subseason!

However, crypto investor Fabio Andreatta is skeptical that "there will even be a subseason." In response to van de Poppe's X post, Andreatta said, "All you're doing is increasing your risk. You are very unlikely to outperform Bitcoin. "Most altcoin will never reach their ATH again."

As you can see from Kriptokoin.com, Bitcoin's dominance shows that the broader market is shifting capital away from altcoins. According to TradingView data, Bitcoin dominance has increased by 2.12% in the last 7 days to 56.05%. Thus, Bitcoin dominance approached an all-time high.

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