2020-10-20 15:00 |
Many investors flipped bullish on Bitcoin relative to altcoins over the past few days. This culminated on Monday when BTC gained 3% while the price of top altcoins dropped by 1-10%. Analysts think this trend may continue for the forseeable future. Bitcoin Could Outperform Altcoins in the Months Ahead
Many investors flipped bullish on Bitcoin relative to altcoins over the past few days as the leading cryptocurrency has begun to outpace its offspring. This culminated on Monday when BTC gained 3% while the price of top altcoins dropped by 1-10% across the board. Even Ethereum dropped around 0.5%, despite first rallying to match Bitcoin.
Analysts think that this trend will continue.
Su Zhu, CIO and co-founder of Three Arrows Capital, commented on the matter:
“$BTC going up swiftly is not only not bullish for alts but it’s bearish. reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant.”
$BTC going up swiftly is not only not bullish for alts but it's bearish
reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant
— Su Zhu (@zhusu) October 19, 2020
He added that he thinks that money will eventually flow back to altcoins when Bitcoin “is in the 40k-70k range.”
His business partner Kyle Davies echoed this sentiment.
“You’re about to find out why all of the rich OG’s hold mostly $BTC.”
The two are seen as prominent investors in the space, having called many trends over the past few months.
Macro Trends Favoring BTCIt’s worth noting that the macroeconomic trends that are driving the cryptocurrency space have a Bitcoin focus.
For one, institutions entering the crypto-asset space are focusing on BTC, and BTC only.
Business services company MicroStrategy accumulated $425 million worth of the leading cryptocurrency in August and September, shocking the investment world. Shortly after, Stone Ridge Asset Management, a more than $10 billion fund manager, revealed it had managed to buy 10,000 Bitcoin.
As Raoul Pal, CEO of Real Vision and a hedge fund veteran, said on the matter:
“Just from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this. It’s an enormous wall of money — just the pipes aren’t there to allow people to do it yet, and that’s coming. But it’s on everybody’s radar, and there’s a lot of smart people working on it.”
In terms of monetary policy, Bitcoin should be the first to benefit from continued stimulus as it is seen as a direct hedge due to its scarce properties. Other crypto-assets may not have that same ability to act as a hedge due to them having higher inflation rates.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Top Fund Managers Think Bitcoin May Seriously Outperform Altcoins origin »Bitcoin price in Telegram @btc_price_every_hour
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