Some cryptocurrency traders are saying that altcoins are a better option than Bitcoin right now,” though not everyone agrees.
As prices tumbled in the final days of 2024, Bitcoin’s dominance has returned to nearly 60%, and traders are clearly realizing that it’s time to shift their accumulation strategies to altcoins.
“Currently, altcoins offer a much better R/R [risk-on-reward] than Bitcoin,” anonymous cryptocurrency trader Dyme said in a note on December 27, adding:
“Bitcoin’s DCA period has now exceeded 1.5 years.”
A survey published by Kraken on October 10 found that nearly 83.5% of crypto investors use a dollar-cost averaging (DCA) strategy, and 59% still use it as their primary method of buy crypto currency. 7.
A DCA strategy involves investing a certain amount of money in an asset at set and consistent times to capture the highs and lows to reach an average selling price.
Dyme said that the $64,400 mark could be a higher risk/reward ratio for the meme currency.
However, Dyme said that Bitcoin’s price is currently down to $96,438 and investors should “stay the course and continue to move higher.”
Soap Capital CEO Tyler Durdan echoed similar sentiments in a statement on Dec. 12. 26 X posted that “the next stage is going to be very clear.” Durdan added:
“I think this is probably the last stage because the change is still the issue.”
Adam Cochran, partner at Cinnaeamhain Ventures, seemed to agree, saying that the US Bitcoin Strategic Reserve is “not likely at this Conference,” making it difficult for Bitcoin to outperform the rest of the market in the short term.
“Other assets benefiting from regulatory clarity, new product launches, the new era of ICOs, etc., will suck a lot of money out of the BTC space,” Cochran said in his December 26 post.
A shift in America’s “top-down” attitude toward Bitcoin
However, some observers, including Blockchain Association CEO Kristen Smith, say Bitcoin’s momentum is far from over, with new investor momentum still growing even at this stage of the cycle.
In December. Smith told CNBC on February 26 that Bitcoin could hit $200,000 before falling to $50,000. That’s a 108% increase from Bitcoin’s current price, according to CoinMarketCap.
Bitcoin is currently trading at $95,720, with CryptoQuant contributor Darkfost recently calling $95,000 a “useful point to implement a DCA strategy.”
Smith also said that the incoming Trump administration, along with changing “on-the-ground” attitudes in the United States and the addition of more financial advisors, could lead to a new wave of capital inflows into Bitcoin.
“As more financial advisors advise their clients to do this, I think more people will jump into Bitcoin,” Smith said.
“People are still looking for more Bitcoin, not less,” he added.
