The crypto market is going crazy with greens.
The large-cap cryptocurrencies are seeing significant gains with Bitcoin Cash (14.38%) and Bitcoin SV (12.06%) being the highest gainers among the top ten cryptos. Other top digital assets like Ethereum, EOS, Cardano, and BNB are up 7-8%. Stellar is the least gainer, excluding the stablecoin USDT, seeing only 3% gains.
Tezos, Dash, and Zcash are yet again euphoric with over 10% gains.
Heck yeah. It’s alt-season
Does it mean we are in an altseason?
“Heck yeah. It’s been altseason mid-January,” said Mati Greenspan, founder of Quantum Economics in his Wednesday newsletter. He explained that one of the defining attributes of alt-season is the random pumps recorded by various coins without any reason whatsoever.
Bitcoin, as a matter of fact, has been underperforming while many of the above-mentioned coins have been surging like crazy.
Altcoins had a worse winter than bitcoin as some like Zcash went down as much as 100% from their all-time highs at one point. As trader Nik Patel notes, “Altcoins are up 39% vs BTC since the Sept ‘19 bottom. Despite this, they’re still at their most depressed in history at 72% from the prior cycle high.”
He added: “Be cautious but be aware that time and history are now actually on your side and the odds are very favourable.”
According to Greenspan the reason for the same could be that investors are now embracing risk and hence jumping into altcoins.
“Throughout the last two years and especially in Q2 and Q3 of 2019 we saw a great consolidation into bitcoin where the entire industry became quite risk averse and the BTC hodlers were rewarded. But it does seem that now, just as in the traditional markets with Tesla and the Nasdaq, investors are embracing risk,” said Greenspan.