Crypto Bubbles & Why Traders Think Altcoins Are Overpriced

The topic of crypto bubbles has been a long one, stretching to many sections of our latest cryptocurrency news. The truth is, cryptocurrency is a community that is no stranger to accusations of it being a bubble. If we go back in time, we can see that the entire bubble trend started in 2014 when people described Bitcoin (BTC) as a bubble – after a Financial Times article from September (that year) contained the ill-fated prediction saying “We’re going to stick our neck out at this stage and call this the end of Bitcoin.”

However, that obviously did not happen. Many best cryptocurrency news sites showed that crypto bubbles are only a discussion and a rumor. Bitcoin certainly did not end in 2014 – instead it came back stronger and continued to rise over the following years. And while certain mainstream observers regard the entire market as one giant balloon – others see altcoins as crypto bubbles which are reflecting the biggest bubble out there, Bitcoin.

One veteran trader and author named Peter Brandt was in the coming altcoin news recently for comparing the altcoin market to the dot-com bubble and claiming that Bitcoin’s recent strong rallies won’t be replicated by other cryptocurrencies. Similar to him, the CEO of ShapeShift Erik Voorhees argued last year that Bitcoin and altcoins form two separate markets.

The crypto bubbles may be there – but they are not as strong as many describe them. For instance, what’s stronger is the fact that Bitcoin increased its price by around 130% over the last three months – and Ethereum grew by 81% in the same period.

However, Brandt thinks the opposite and believes that altcoins are crypto bubbles. As he said in a tweet at the end of June:

“I believe that the advance in late 2017 and early 2018 in altcoins will prove to be bubbles. I am of the firm belief that 95% of alt-coins will eventually be worthless and that BTC will occupy 80% to 90% of the total market cap of cryptocurrencies. No doubt several of the altcoins and macro-cap coins will find utility in specialized niches. It remains to be seen which coins these will be.”

Another believer in this theory is Max Keiser, who was featured in a CNBC interview for stating:

“The dominance index is at 60% again, and it’s going back to 80% or 90%. Because that’s the only logical place for anyone who wants to be in crypto to be. But the short answer is, in my view, the altcoin phenomenon is finished.”

However, it is worth considering the question of whether the cryptocurrency market is a whole unity and draw conclusions from it – instead of distracting ourselves with crypto bubbles.