Bitcoin Expected to Outperform Altcoins, Say Digital Asset Traders

Bitcoin Expected to Outperform Altcoins, Say Digital Asset Traders

Some traders are moving their funds from altcoins back to Bitcoin

Some digital asset traders have publicly announced that they are moving their funds from altcoins (cryptocurrencies other than bitcoin) back to the bitcoin market because they expect bitcoin to outperform the entire cryptocurrency market over the next few months.

Kevin Zhou, the co-founder of Galois Capital based in San Francisco, has stated that his company now favors bitcoin and expects the upward trend of altcoins over the past few months to reverse, with their prices facing a decline in the coming months.

Interest may shift back to Bitcoin from altcoins

Another well-known DeFi investor and co-founder of Three Arrows Capital, Kyle Davies, also believes that interest will shift back to bitcoin from altcoins as the hype of the DeFi market subsides and yields of liquidity mining plummet.

Trading volumes and market performance of altcoins have recently decreased, as indicated by two futures indices launched by the digital asset derivative exchange FTX. While altcoins have shown stronger performance than bitcoin and ethereum due to the recovery and stabilization of the global financial market in 2020, many investors have benefited from investing in altcoins associated with DeFi and liquidity mining in the second half of the year.

However, as the fourth quarter approaches, some professional cryptocurrency traders are gradually betting on bitcoin and expecting an upward trend while altcoins continue to decline.

Kevin Zhou also suggests that the mild selling pressure of altcoins observed in September might continue into the fourth quarter, and the downward trend of altcoins may last for at least a year.

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Conclusion

Investing in cryptocurrencies can be risky, and investors should always do their own research and seek professional advice before making any decisions.