There is one rule that you must always remember in the cryptocurrency market and it will likely be the single biggest factor that determines whether you are successful in this market or fail.
You must always remember that nothing is guaranteed in the crypto.
There is no guarantee that Bitcoin and Ethereum will remain the 2 largest blockchains, and there is also no guarantee that this market will be around ten years from now. Recently everyone is starting to daydream about just where prices could go this cycle. Some are saying that Bitcoin could soar up to $500k. Others are saying that Ethereum could rise up to $15k. And finally, some are predicting that Solana could move up to $1k.
However, if the last cycle taught us anything, it’s that we should expect the unexpected; and be prepared for disappointment.
With that said; there is one particular area in crypto where I see the most danger. An area where everyone is making an assumption without putting much research into it. It very well could end up being the fatal mistake that destroys their crypto portfolio. Making it difficult to ever recover from it.
After watching the market intensely I strongly feel that this cycle has a very good chance to be the last cycle that you can become rich from crypto. The rags-riches dream that we have all been striving for since entering this market.
With that said; this time will be different from past cycles. In previous cycles, almost everything was guaranteed to go parabolic. You could simply throw a dart at the wall; pick any crypto project and make a fortune.
The crypto market has matured and that method no longer works. There are three reasons for this.
- The Bitcoin Spot ETF
- Market Dilution
- Worldwide Recession
1. The Bitcoin ETF
The spot Bitcoin ETF launch in the US led by BlackRock completely changed the game. Unprecedented amounts of money have entered BTC, but they are trapped in BTC. The investors who are buying the BTC ETF have no interest in altcoins and would never even consider buying meme coins. They can either buy Bitcoin, the Ethereum ETF, or nothing else. None of that capital inflow is going into low-cap altcoins. The Bitcoin magnet that would pull up all other altcoin’s prices is coming to an end. Altcoins will now have to have real merit, performance, or a use-case to appreciate in value.
2. The Market Dilution
Long gone are the days when there were just a few hundred or even a thousand projects. There are millions of them. The problem is that 99.99% of these projects have no use-case and were just made for pump and dumps with the creators hoping to become rich. The worst of these are meme coins.
The problem is that because there are far too many projects, that also means that retail money is being spread too thin.
If there were just a few hundred legit projects, there would be much more money available to be invested in each project. Instead, because there are far too many projects. The end result is that nearly all of them won’t make money, or even come close to making new all-time high prices.
3. Worldwide Recession
Inflation has spread rampantly across the world. The harsh reality is that most people are having a difficult time financially and even being able to pay the bills for life’s necessities has become a struggle.
People just don’t have a lot of expendable money to invest in crypto and that is one of the largest reasons that altcoins have been struggling so much.
It’s very likely that we could see a market cycle where Bitcoin exceeds all expectations and reaches price levels far beyond what we could have even imagined. However, it also could result in this cycle being the one where low-cap altcoins die, and never come back.
This crypto cycle is different from any that we’ve ever seen. This time could actually be different. But are most ready for what that could mean?
How about you? Is this the cycle where we see the end of low-cap altcoins?
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As always, thank you for reading!
