Analyst: Watch Which Altcoins Hold Against Bitcoin For Surprising Springboard Recovery
The top two crypto asset by market cap Bitcoin and Ethereum pumping so hard has left the rest of the crypto market in its dust. Even DeFi tokens that had once been hot to trot have plummeted in the wake of this week’s rally.
But one crypto analyst claims its wise to pay close attention right now to how certain altcoins hold up to the rally in majors, as they may be the top-performing assets once the top two titans cool off.
Bitcoin, Ethereum, and XRP Break Out, Crushing Small-Cap Altcoins In Their Wake
Bitcoin and altcoins have an unusual relationship. Occasionally, the assets all rise together in the same tide, while other times they show an inverse relationship.
When major crypto assets all rally together, it can often be disastrous for riskier, smaller-cap, and mid-cap altcoins. That’s exactly what happened this week when Bitcoin, Ethereum, and XRP began soaring.
Bitcoin broke above $10,000 and is trading well above $11,000, and Ethereum rallied by almost 50% in a week.
XRP, which has been the crypto market’s worst performer two years running, is primed for a major rally and kicked it off with an over 13% return on the week. It even helped the altcoin regain the third-ranked spot in the top ten crypto assets by market cap from stablecoin Tether.
Together, these top three crypto assets absorbed a substantial amount of capital from the rest of the crypto market, fueling the pump. New money also came in, as investors flocked to hard assets like precious metals and crypto as a hedge against inflation.
While Bitcoin and $ETH enjoy their rallies…
Watch which Altcoins are holding up the best, despite money flowing back to $BTC and Large Caps
Those Altcoins are the ones that will springboard the strongest once money flows back into Mid- and Low-Caps#Bitcoin
— Rekt Capital (@rektcapital) July 31, 2020
Analyst: Altcoins Holding Up During Major Crypto Rally Highlight Most Promising Projects
Which altcoins hold up well against Bitcoin and Ethereum during the next few weeks, especially small-cap altcoins, will be the best performers in the new bull market, according to one crypto analyst.
The analyst claims that any altcoins that show exceptional strength and hold their valuations well while majors rally, will be the most likely assets to “springboard” back when Bitcoin, Ethereum, and XRP cool down.
Related Reading | Crypto Analyst Pitches a Case For XRP to Hit $30 By End of 2021
Any small or mid-cap altcoins holding strong against a massive rally in majors will be due to their holders seeing the true, long-term value in the projects or coins. This typically indicates that there’s real merit in the cryptocurrency, and are the likeliest to rise when the full bull market begins.
For example, Ethereum and XRP were once far less than their current valuations, and the initial Bitcoin boom helped propel these assets into the finance industry limelight.
They’ve since become top contenders of their own. And when they do finally pause their current momentum, the next round of top contenders will begin to stand out from the pack.