Even though Bitcoin has seen an explosive move higher since the $3,700 March lows, altcoins are actually largely outperforming the market leader. This trend has contradicted sentiment that BTC leads the cryptocurrency market higher in bull runs.
Yet analysts are coming to the conclusion that it is only a matter of time before Bitcoin starts to outperform altcoins once again.
Bitcoin Has Underperformed Altcoin Aggregates in 2020, Data Shows
Data shows that since the start of 2020, altcoins have largely outperformed Bitcoin.
A prominent crypto trader and data analyst recently shared the chart below to illustrate this point.
It shows that the small cap, medium cap, and large cap altcoin indexes from crypto exchange FTX have largely outperformed Bitcoin in the past five months. The performances of the indexes and Bitcoin are as follows:
- FTX’s small capitalization altcoin index is up 80% since the start of the year
- FTX’s mid capitalization altcoin index is up 60% since the start of the year.
- FTX’s large capitalization altcoin index is up 38% since the start of the year.
- Bitcoin is up 33% since the start of the year.
The analyst that shared the chart remarked that this isn’t “too surprising given how far altcoins fell versus bitcoin over the past couple years.”
Commentators, however, don’t think that the trend of altcoins strongly outperforming Bitcoin will last for long.
It Won’t Last for Long
Prominent stock market trader and commentator Steve Burns opined in May that “99.9% of altcoins are going to $0 [… over a] buy and hold timeframe.”
They have “zero value,” he added, referencing the utter collapse (80%+) of most cryptocurrencies from their all-time high prices. This is a list that includes notable names like Ethereum and Litecoin.
Spoiler alert
: 99.9% of Altcoins are going to $0.
— Steve Burns (@SJosephBurns) May 19, 2020
This is a sentiment that has been echoed by Kevin Rose, a co-founder of Digg and a general partner of True Ventures, who told TechCrunch in a recent interview:
“The problem is that 99% of the projects out there and a lot of the people who are behind them are just in this for the pure financial gain. And there’s a lot of garbage out there. And that’s unfortunate because it really drags down the high-quality projects, and it muddies the space quite a bit.”
The technical evidence is there as well.
As reported by Bitcoinist previously, Josh Olszewicz, a crypto analyst at Brave New Coin, observed on May 15th that Bitcoin’s dominance chart printed a textbook signal of strength: a golden cross.
Golden crosses often precede “bullish breakouts,” suggesting Bitcoin will rally against altcoins.
Featured Image from Shutterstock Price tags: btcusd, xbtusd, btcusdt Low Cap Altcoins Are Dominating Bitcoin in 2020: Here's Why It Won't Continue