Due to the dynamism in the altcoin market in recent days, most investors have started selling their BTC and buying altcoins. Behind these investments was a bullish wave driven by Cardano and Dogecoin. While the recent horizontal trend of bitcoin pushed investors to such volatile assets, a famous fund investor warned that this strategy is extremely risky.
This trend was confirmed by a poll shared by famous analyst PlanB on July 10. The respondents showed a strong trend that they were selling BTC to buy altcoins. It should be noted that this strategy has been successful recently, because some altcoins performed much better this week than BTC.
Jason Williams: “Instead of buying altcoins, do HODL.”
However, a leading fund manager thinks this strategy can be dangerous and risky.
Jason Williams, partner of Morgan Creek Digital, announced that selling Bitcoin to buy altcoin can be a dangerous game:
People are selling bitcoins in order to buy altcoins. I think this is very risky. I’m sure it would reveal what a good strategy HODLing would be if a real and honest historical analysis was done.
Williams’ thought is based on the long-standing belief that holding Bitcoin is better than trying to predict short-term swings in BTC or altcoins.
4 signs that the altcoin season will end soon
Jason Williams isn’t the only one who thinks this way. An analyst tweeting under the pseudonym CryptoAmsterdam shared four indicators saying that the altcoin rally might end soon:
- Bitcoin domination is poised to drop significant weekly support.
- BTC volatility is at extremely low levels seen last March 2019. Bitcoin often leads the crypto market during cuts.
- Q3 has historically been a downward quarter for Bitcoin. BTC has outperformed altcoins in recent bear trends.
- Binance CEO Changpeng Zhao said that most altcoin projects are unlikely to “pump” upcoming market cycle.
It remains unclear how long the rally started by leading altcoins like Dogecoin and Cardano will last. However, it is not necessary to be an expert to see some signs of weakness. It should be remembered that if one of the coins carrying this rally or bitcoin sees a steep drop, altcoins in the increase may be upside down.
