Earlier this week, the coming altcoin news featured the economist and crypto analyst named Alex Kruger who tweeted that he thinks that the majority of altcoins have “become asymmetric bets with an unattractive return profile.” However, a new report suggests that altcoins are no match for Bitcoin when it comes to the actual return on investment (ROI).
April’s impressive altcoin rally (alt season) where a number of altcoins posted 300% to 500% gains. They performed poorly against Bitcoin since late April. Still, the altcoin to Bitcoin pairings have taken an absolute beating and altcoin to fiat pairings have also endured a lot of dark days.
As Kruger said in the altcoin news, ““alts consistently underperform BTC on down days, and only sometimes outperform BTC on up days.” It is very interesting that this statement aligns with a detailed report released by CoinMetrics last week.
The data from the report, as shared by many cryptocurrency news sites, shows that altcoins are no match for BTC. It also shows that over the month of July, the majority of alts were down more than 40%. This came as Bitcoin had only dropped by 2% at the time of the report’s publication.
The report was featured on multiple best cryptocurrency news sites. It pointed out that EOS (-44%), Cosmos (-41%), Cardano (-37%), Tezos (-6%), VeChain (-10%) were all “notable underperformers.” It points to geopolitical, macro-economic, and regulatory factors as well – all as the primary influence upon Bitcoin and altcoin price action.
If we see everything from a macroeconomic perspective, it is true that altcoins are no match to Bitcoin when it comes to recession and all. The Coin Metrics points out that:
“It now seems nearly certain that the four major central banks of the world (the Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China) are on the cusp of another monetary easing cycle. As real interest rates decline, the opportunity cost of holding non-yield producing assets like Bitcoin declines.”
Only time will tell whether or not altcoins are able to find some strength and regain the patches of territory that have been forfeited to Bitcoin over the past few months. Currently, altcoins are no match to Bitcoin – and are very much close to the BTC price movements.
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