Will Altcoins Ever Recover? The Data Tells a Surprising Story!
Published: 2025-02-13
Status:
Available
|
Analyzed
Published: 2025-02-13
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Global liquidity is predicted to continue rising until the end of 2025, according to Bitcoin Magazine Pro and liquidity experts like Michael How.
"Global liquidity has basically been going up only since 2023 and this is according to the global liquidity measure from Bitcoin magazine Pro and this indicator is consistent with analysis by liquidity experts such as Michael how who believe that liquidity will continue Rising until the end of the year."
Pending
Pro-crypto policies are expected to be implemented, including stopping SEC regulation by enforcement, allowing traditional institutions to interact with crypto, and establishing a strategic Bitcoin reserve.
"pro crypto policies which would primarily benefit altcoins such as stopping the sec's regulation by enforcement and allowing tradire institutions to interact with crypto protocols never mind the Strategic Bitcoin Reserve that he promised to establish as well"
Pending
Altcoin dilution is identified as the main cause for the underperformance of most cryptocurrencies.
"this so-called altcoin dilution is believed to be the primary reason why most cryptos have been underperforming so far"
Pending
Mamadov believes meme coins will continue to outperform.
"why he believes that memecoins will continue to outperform"
Pending
Liquidity is expected to flow from Bitcoin to larger altcoins (like Ethereum), then to smaller altcoins, and finally to speculative assets like NFTs. However, recently, liquidity appears to have bypassed intermediate steps and gone directly from Bitcoin to meme coins and speculative AI tokens.
"it's believed that liquidity first moves into Bitcoin and eventually it rotates into larger altcoins like ethereum and then into smaller altcoins and eventually more speculative assets like nfts as many have pointed out it seems that this liquidity went straight from the first base to the third this time around it went into BTC and then skipped everything else and went straight into mem coins and speculative AI tokens"
Pending
Changes in KYC regulations have made it harder for liquidity to flow into altcoins via centralized exchanges, while improved user experience on decentralized exchanges and wallets facilitates liquidity flow to those platforms.
"those of you who were active in the previous crypto bull market might recall that most crypto exchanges did not require kyc and this made it very easy for investors around the world be they retail institutions or otherwise to access altcoins however this started changing at the end of 2021 with the kyc Crackdown the result is that it has become much harder for liquidity to flow into altcoins VI centralized exchanges at the same time the user experience on decentralized exchanges and even crypto wallets has improved substantially neither of these two require kyc to use which makes it easier for liquidity to flow to them"
Pending
Upcoming pro-crypto policies in the US are expected to increase liquidity flow into altcoins through exchanges, DeFi, and altcoin ETFs.
"the proc crypto policies currently being rolled out in the US will have the practical effect of making easier for more liquidity to flow into altcoins not just via exchanges but also via defi and via altcoin ETFs which will unlock new sources of liquidity just like they did for Bitcoin"
Pending
Pro-crypto regulations are likely to pass, leading to changes in market structure that will facilitate liquidity flow into altcoins, including the approval of spot altcoin ETFs, increased listings on exchanges, wider DeFi access, and integration with traditional finance.
"it's now been about a month since Trump's inauguration so if history repeats then chances are we will see proc crypto regulations passed sooner than later and this is objectively likely when you realize that Trump's Pro crypto policies will be passed through Congress as their own individual blls and that most of Congress is pro crypto thanks to the lobbying by the crypto industry during the election so if history repeats this could mean that we would see many altcoins start rallying in the coming weeks because of changes to Market structure that will make it easier for liquidity to flow into them these changes include allowing exchanges to list more altcoins allowing us users to use defi protocols which is currently not allowed allowing tradire to integrate with these protocols and approving spot altcoin ETFs"
Pending
Restrictions on institutional investors using Ethereum for activities like tokenized real-world assets are likely to be lifted soon due to pro-crypto government support and industry lobbying.
"ethereum's security and liquidity makes it ideal for institutional investors which have practically been restricted due to crypto regulations specifically institutional investors have been restricted from using ethereum for more things like launching in tokenized real world assets and in case you missed the news Mega Banks like the Bank of America and asset managers like Black Rock have been pushing Regulators to drop these restrictions on institutions with a pro crypto president a pro crypto Congress and pro crypto appointees in Regulatory Agencies the chances of these restrictions being lifted is objectively high and given how quickly the Trump Administration has been moving on its policies these restrictions will be lifted sooner than later"
Pending
Multiple spot altcoin ETFs are likely to be approved, benefiting more altcoins through second-order effects.
"in the interim we were likely to see multiple spot altcoin ETFs approved even though only a few altcoins are likely to get spot ETFs of their own many more could benefit from the second order effects"
Pending
The demand side of the crypto market, driven by macro factors like liquidity, is expected to remain bullish in the foreseeable future.
"the demand side of the equation which comes from macro factors like liquidity appears to be bullish and will continue to be bullish for the foreseeable future"
Pending
Changes in crypto factors, particularly regulations impacting market structure, will enable demand to reach struggling cryptos. Bitcoin is likely to continue outperforming most altcoins, but selective altcoin investments could yield good rewards.
"once there are changes to crypto factors specifically regulations that change crypto Market structure it will become easier for this demand to find its way into cryptos that have been struggling so far make no mistake this doesn't mean that every crypto is going to Moon indeed it's likely that Bitcoin is going to continue outperforming the majority of the altcoin market however if you are selective with the altcoins you bet on you could be decently rewarded"
Pending
Altcoins on blockchains popular with institutions (like Ethereum) or retail investors (like Solana), or those popular with both, are likely to perform well.
"if that's a coin belong to a blockchain that's popular with institutions like ethereum a coin belonging to a blockchain that's popular with retail like salana or if it's a token on a blockchain that's popular with instit tions or retail like ethereum and salana then chances are that it's going to do well even with a few more altcoins around"
Pending
Global liquidity has been on a consistent upward trend since 2023.
"global liquidity has basically been going up only since 2023"
Pending
Global liquidity is predicted to continue increasing until the end of the year (presumably 2025, based on context).
"liquidity will continue Rising until the end of the year"
Pending
Following Donald Trump's election victory, many crypto traders began to bet on price increases due to his promised pro-crypto policies.
"When Donald Trump won the US election last November lots of crypto Traders started going long I.E betting that crypto prices would go up and that's because Trump had promised to implement proc crypto policies if he were elected"
Pending
Donald Trump's pro-crypto policies are expected to benefit altcoins by halting SEC enforcement-based regulation, enabling traditional institutions to interact with crypto protocols, and establishing a strategic Bitcoin reserve.
"pro crypto policies which would primarily benefit altcoins such as stopping the sec's regulation by enforcement and allowing tradire institutions to interact with crypto protocols never mind the Strategic Bitcoin Reserve that he promised to establish as well"
Pending
The SEC's repeal of the anti-crypto rule SAB 121 is seen as a positive development for the crypto market.
"the sec's repeal of an anti-crypto called Sab 121 is one example here"
Pending
Tariff concerns in early February triggered automated sell-offs exceeding $1 billion in the crypto market.
"the Tariff fears in the first weekend of February caused crypto prices to drop to the point that they triggered an automated sell-off of over $1 billion across the crypto market"
Pending
Hundreds of millions of dollars in crypto collateral, primarily Ether (ETH), were liquidated on DeFi platforms.
"hundreds of millions of dollars of crypto collateral was sold mostly eth"
Pending
The increasing supply of altcoins relative to demand, termed 'altcoin dilution,' is identified as the main cause for most cryptocurrencies underperforming.
"there has been a growing supply of altcoins relative to the current crypto demand and this so-called altcoin dilution is believed to be the primary reason why most cryptos have been underperforming so far"
Pending
Approximately 40 million new tokens have been launched on major blockchains since the 2021 bull market.
"around 40 million tokens have been launched on the biggest chains since the 2021 bull market"
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Significant amounts of liquidity, totaling billions of dollars, are locked in low-value pools specifically for meme coins.
"billions of dollars of liquidity are locked in low value pools for meme coins"
Pending
Mamadov predicts that meme coins will continue to outperform other cryptocurrencies.
"why he believes that memecoins will continue to outperform"
Pending
The typical flow of liquidity in crypto is believed to be: Bitcoin -> large altcoins (e.g., Ethereum) -> smaller altcoins -> speculative assets (e.g., NFTs).
"it's believed that liquidity first moves into Bitcoin and eventually it rotates into larger altcoins like ethereum and then into smaller altcoins and eventually more speculative assets like nfts"
Pending
This cycle, liquidity moved from Bitcoin directly into meme coins and speculative AI tokens, skipping intermediate stages.
"it seems that this liquidity went straight from the first base to the third this time around it went into BTC and then skipped everything else and went straight into mem coins and speculative AI tokens"
Pending
KYC regulations have made it harder for liquidity to enter altcoins via centralized exchanges, while improved UX on DEXs and wallets, which don't require KYC, facilitates liquidity flow to them.
"it has become much harder for liquidity to flow into altcoins VI centralized exchanges at the same time the user experience on decentralized exchanges and even crypto wallets has improved substantially neither of these two require kyc to use which makes it easier for liquidity to flow to them"
Pending
A significant portion of liquidity is flowing into decentralized exchanges and crypto wallets on scalable blockchains, particularly Solana.
"most of this liquidity has been flowing into decentralized exchanges and crypto wallets on scale of blockchains namely salana"
Pending
Upcoming pro-crypto policies in the US are expected to facilitate greater liquidity flow into altcoins through exchanges, DeFi, and altcoin ETFs, similar to Bitcoin's experience.
"the proc crypto policies currently being rolled out in the US will have the practical effect of making easier for more liquidity to flow into altcoins not just via exchanges but also via Defi and Via altcoin ETFs which will unlock new sources of liquidity just like they did for Bitcoin"
Pending
Initial inflows into spot Bitcoin ETFs did not meet investor expectations, and significant outflows were observed from Grayscale's Bitcoin Trust.
"their inflows did not meet the high expectations of investors and there was also large outflows from grayscales Bitcoin trust"
Pending
Macro liquidity increasingly flowed into Bitcoin via ETFs, leading to new all-time highs before the halving, an unprecedented event.
"more and more of this macro liquidity began flowing into Bitcoin via the ETFs and this is an understatement as Bitcoin ended up rallying so much that it hit new all-time highs before the harving something that has never ever happened before"
Pending
Following the clear indication of a landslide victory for Donald Trump, altcoins began to rally significantly.
"it became clear that it would be a landslide victory for Donald Trump and altcoins started rallying hard"
Pending
Altcoins experienced a decline, potentially leading to the largest liquidation event in crypto history.
"altcoins started falling eventually experiencing what some estimate to be the largest liquidation event in crypto's history"
Pending
Pro-crypto regulations are highly likely to be passed soon, as Trump's policies will be individual bills, and a pro-crypto stance is prevalent in Congress due to industry lobbying.
"chances are we will see proc crypto regulations passed sooner than later and this is objectively likely when you realize that Trump's Pro crypto policies will be passed through Congress as their own individual blls and that most of Congress is pro crypto thanks to the lobbying by the crypto industry during the election"
Pending
If historical patterns hold, many altcoins could begin to rally in the coming weeks due to market structure changes that will facilitate liquidity inflow.
"if history repeats this could mean that we would see many altcoins start rallying in the coming weeks because of changes to Market structure that will make it easier for liquidity to flow into them"
Pending
Ethereum's security and liquidity make it particularly attractive for institutional investors.
"ethereum's security and liquidity makes it ideal for institutional investors"
Pending
The likelihood of restrictions on institutional crypto engagement being lifted is high, and the Trump administration's swift policy implementation suggests this will happen sooner rather than later.
"the chances of these restrictions being lifted is objectively high and given how quickly the Trump Administration has been moving on its policies these restrictions will be lifted sooner than later"
Pending
Multiple spot altcoin ETFs are likely to be approved, with many more benefiting from indirect effects even if they don't have their own ETFs.
"we were likely to see multiple spot altcoin ETFs approved even though only a few altcoins are likely to get spot ETFs of their own many more could benefit from the second order effects"
Pending
The approval of a Solana ETF is expected to boost SOL's price, encouraging more SOL holders to borrow stablecoins against their holdings and use them in DeFi protocols within the Solana ecosystem.
"a salana ETF approval will likely boost Soul's price in turn this will result in more salana holders borrowing stable coins against their soul and to use in defi protocols in Solana's ecosystem to bet on cryptos within that ecosystem"
Pending
Changes in market structure and eased restrictions are expected to lead to increased inflows into scalable blockchains other than Sui.
"it should result in more inflows into other scalable blockchains aside from like sui"
Pending
Macroeconomic factors, such as liquidity, indicate a bullish and sustained outlook for the demand side of the crypto market.
"the demand side of the equation which comes from macro factors like liquidity appears to be bullish and will continue to be bullish for the foreseeable future"
Pending
Selective investment in altcoins could lead to significant rewards.
"if you are selective with the altcoins you bet on you could be decently rewarded"
Pending
Coins on blockchains popular with institutions (like Ethereum) or retail investors (like Solana), or those on blockchains popular with both, are likely to perform well despite increased altcoin competition.
"if that's a coin belong to a blockchain that's popular with institutions like ethereum a coin belonging to a blockchain that's popular with retail like salana or if it's a token on a blockchain that's popular with instit tions or retail like ethereum and salana then chances are that it's going to do well even with a few more altcoins around"
Pending