Bitcoin and cryptocurrencies as a whole have had an excellent past two weeks. Altcoins have performed spectacularly, taking a significant chunk of Bitcoin’s dominance. A lot of this comes from smaller altcoins, but plenty of major altcoins are hitting it big too (e.g: EOS).
Steemit Post: https://steemit.com/bitcoin/@cryptovestor/cryptocurrencies-boom-the-next-bull-run-and-cycle-discussion
The general sentiment in the market seems to be much more positive and the decreasing Bitcoin dominance is a sign of risk-on investor behavior. I have mentioned previously that I suspect many investors missed the previous bull run entirely, either due to not knowing about Bitcoin or finding out too late.
This class of investors will most likely drive this run (along with those who did well in the previous run). In terms of whether or not we have moved into an altcoin cycle, it is increasingly seeming like the case. However, Bitcoin dominance fell quite quickly and given the current dominance for smaller altcoins, I think it’s possible for a slight rebound in dominance for Bitcoin to around 40% dominance. For now, I’d remain selective on smaller altcoins.
Larger altcoins are still quite behind where they were at their peaks in the previous altcoin cycle (e.g: Ethereum, Ripple, Litecoin), so there might be more opportunities in this group rather than small caps at present time.
I no longer suspect that Bitcoin dominance will rise to 50% (so I’m accepting I was wrong on the peak we’d reach, go ahead and rub it in!). As long as a bull run is in the card, riskier behavior is likely and that means less interest in Bitcoin overall unless it has a major catalyst (e.g: major hard fork like Bitcoin Cash or Segwit2x).
What are your thoughts on the market right now? Do you see us moving into a bull market or is this nothing but a bull trap? Do you prefer Bitcoin or altcoins? Let me know in the comments below. Thank you for watching / reading!
P.S: Video also includes highly requested update on Salt (sold rest of it today) and Polymath (continue to hold despite significant losses against BTC).
If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me – everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently.
My Recommended Hardware Wallets:
If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):
Ledger Nano S: http://amzn.to/2hZPj0q
Ledger Blue (expensive): http://amzn.to/2hk7xst
I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
My Favorite Book for Investing in Crypto:
This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.
It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
My Recommended Exchanges: Coinbase / GDAX / Bittrex
If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
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None of what I provide in my videos is investment advice. Please do your own due diligence.
Seeking Alpha: https://seekingalpha.com/author/truth-investor/articles