Altcoins, have the last 5 years been in vain?..."Ending 1,600 days of sideways movement, on the verge of explosion"

▲ Altcoins

The altcoin market has been experiencing a long, boring period of sideways movement, as if growth has stalled for five long years. However, it has reached an inflection point where the contraction phase of the macro economy is ending and liquidity is recovering. At the same time, it is condensing powerful energy that could replicate past explosive surges.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, pointed out the extreme undervaluation of the altcoin market in a video released on May 10th (local time), noting that Ethereum (ETH), which recorded $3,900 five years ago, is currently hovering around $2,290. Gambardello diagnosed that investors feel the past five years have been in vain due to a strange phenomenon where the price of a grocery item like potatoes fluctuated from $262 to $21.8, showing higher returns than altcoins. Nevertheless, Gambardello emphasized that the current market situation is, in fact, the last opportunity to generate immense wealth.

The long-term stagnation of the altcoin market is analyzed as a result of record quantitative tightening policies, not a flaw in cryptocurrency itself. In the last cycle, the altcoin market's correction period, excluding Bitcoin (BTC), was only 700 days, but this time, declines and sideways movements have been repeating for over 1,600 days since the 2021 peak. The fact that the Russell 2000, an index for small and medium-sized stocks in the traditional stock market, has also seen stagnant returns since November 2021 suggests that the current asset price stagnation is closely intertwined with the macro economic cycle.

Macroeconomic indicators have already begun to signal a reversal. The manufacturing Purchasing Managers' Index (PMI) is showing a positive trend, surpassing 50, which is the baseline for economic expansion, and the powerful quantitative tightening policy is also coming to an end. Gambardello predicted that as the business cycle enters an expansion phase, a large-scale rotation of funds from the traditional stock market to the cryptocurrency market will begin in earnest. Although the altcoin market capitalization has shrunk from $1.5 trillion in 2021 to its current level of $1 trillion, experts view this as a pressure cooker phase where energy has built up to its limit.

Past historical experience supports the current optimism. Even in 2019, when pessimism was at its peak with an 89% crash in the altcoin market from its high, there was an astonishing surge of 3,200% after the bottom was confirmed. If the altcoin market capitalization, currently around $1 trillion, expands to $5 trillion, individual altcoins will record unimaginable returns. The phenomenon of large institutional investors, including Tom Lee, accumulating Ethereum during a dull market is analyzed as a result of their prior awareness of the explosive potential of such a cycle.

The late stage of a bear market, when the public is exhausted and leaves the market, becomes the optimal time to accumulate assets from a long-term perspective. Only investors who have patiently prepared for the future amidst a harsh environment where numerous virtual asset-related companies close down and lay off employees can become the true winners of the upcoming bull market. History has proven that new upward cycles begin at the most pessimistic moments, and the current accumulation process is expected to yield immense rewards soon.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*