Amidst a recent deceleration in Bitcoin’s momentum, its dominance has climbed back to nearly 60%, prompting discussions among traders about potentially shifting their focus towards altcoins. According to pseudonymous trader Dyme, the altcoin market currently presents a more favorable risk-reward profile compared to Bitcoin. Dyme suggested that the time for dollar-cost averaging (DCA) in Bitcoin might be over for the next 1.5 years. Although 83.5% of investors have utilized the DCA strategy, with 59% employing it as their primary purchasing method, the market dynamics are evolving.
Bitcoin’s current dominance stands at 58.35%, with Dyme predicting an exuberant 2025 for altcoins, citing assets like Dogecoin, Solana, and other memecoins as potential opportunities. Despite these suggestions, Dyme advised existing Bitcoin holders to maintain their positions, assuming traditional market cycles persist.
Echoing this sentiment, Tyler Durdan, CEO of Soap Capital, anticipates a significant upswing in Bitcoin’s price trajectory, possibly marking the end of a current leg in the market cycle. Meanwhile, Cinneamhain Ventures partner Adam Cochran tempered expectations, noting concerns about the establishment of a US Bitcoin Strategic Reserve, which he believes remains unlikely with the current Congress. This, according to Cochran, could challenge Bitcoin’s ability to outpace other assets in the short term.
Despite these varied perspectives, Blockchain Association CEO Kristin Smith maintains an optimistic outlook, asserting that Bitcoin still harbors substantial upside potential. In a recent interview, Smith predicted Bitcoin reaching $200,000 before possibly declining to $50,000, representing a significant increase from its current price.
Smith also highlighted a potential influx of investment in Bitcoin, fueled by the incoming Trump Administration’s policy shifts and a greater participation from financial advisers. As Bitcoin traded at $95,720, it was noted by CryptoQuant contributor Darkfost as a favorable range for implementing a DCA strategy.
The evolving narrative reflects a division among market participants, with some advocating for a strategic pivot to altcoins while others remain confident in Bitcoin’s long-term potential.
