As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull and bear cycles, from dot-com boom to the 2008 financial crisis, and now cryptocurrencies. Having closely followed Bitcoin’s journey since its inception, I must admit, it has been a rollercoaster ride that keeps me on my toes.
As Bitcoin’s dominance approaches 60% once more during a price plateau towards the end of 2024, there’s an increasing sentiment among traders that it might be prudent to adjust their accumulation approach and focus on altcoins. Anonymous crypto trader Dyme expressed this viewpoint in a Dec. 27 post, stating “At present, altcoins provide a significantly better Risk-Reward balance compared to Bitcoin.
“Time to DCA Bitcoin is over for another 1.5+ years.”
Approximately 83.5% of cryptocurrency investors have implemented the Dollar Cost Averaging (DCA) method in their investments, and about 59% continue to rely on it as their main approach for purchasing crypto, according to a Kraken survey released on October 7th.
Investing a specific sum into an asset on a consistent schedule, at predetermined intervals, allows for capturing both market highs and lows, ultimately leading to an average buy cost with the Dollar-Cost Averaging (DCA) method.
In simpler terms, Dyme told their 64,400 followers that the altcoin market in 2025 might be quite unpredictable and potentially risky, but they also mentioned that there could be significant profit opportunities for assets like Dogecoin (DOGE), Solana (SOL), and even a variety of memecoins.
Instead, Dyme advises current Bitcoin (BTC) owners to “keep going and let it rise,” but only if the trends persist, as he put it.
Echoing a similar sentiment, Soap Capital CEO Tyler Durdan said in a Dec. 26 X post that the “next leg up will be glorious.” Durdan added:
“I’m toying with the idea that it may be the final legs and cycles are, in fact, still a thing.”
According to Adam Cochran, a partner at Cinnaeamhain Ventures, there’s a slim chance that a U.S. Bitcoin Strategic Reserve will be established under the current Congress. As such, it might be challenging to foresee Bitcoin outpacing other market sectors in the near future.
In a December 26th post, Cochran stated, “Other investments will gain from regulatory certainty, fresh product launches, and new ICO phases, which could draw a significant amount of liquidity away from Bitcoin.
Change in attitude to Bitcoin ‘from the top’ in the US
Nevertheless, certain analysts such as Kristin Smith, CEO of the Blockchain Association, believe that the Bitcoin growth trend is not yet exhausted, suggesting that new investors could still reap benefits despite being in a mature phase of the market cycle.
In a December 26 conversation with CNBC, Smith predicted that the value of Bitcoin could rise to as high as $200,000 before it might even touch $50,000 again. This projection indicates a potential increase of approximately 108% from Bitcoin’s current price based on data from CoinMarketCap.
At the moment, Bitcoin is being exchanged for approximately $95,720, and as per the insights shared by CryptoQuant contributor Darkfost, the range around $95,000 could be an advantageous area to implement a Dollar-Cost Averaging (DCA) strategy.
Smith indicated that the upcoming Trump Administration, coupled with a change in mindset “at the highest level” in the U.S., as well as an increasing number of financial experts supporting it, is expected to cause a fresh influx of funds towards Bitcoin.
Given that an increasing number of retail financial advisors are recommending Bitcoin, it’s likely that we’ll witness a growing number of individuals investing in Bitcoin,” Smith suggested.
“People are holding to look for more Bitcoin, not less,” she added.
This post serves primarily as a source of knowledge and isn’t meant to be construed as legal or financial guidance. Any perspectives, assumptions, or conclusions shared by the author may not align with or accurately reflect the viewpoints of CryptoMoon.
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2024-12-27 06:26