Is a market purge underway?

[KryptoBull]

We now have the US presidential election results and a new lower interest rate from FED. Everything seems very positive for the overall economy and the crypto market in particular. Unfortunately, only BTC has seen a positive impact, while most altcoins have yet to meet investor expectations in the market.

BTC Dom has climbed nearly 60%, meaning BTC's market cap now accounts for 60% of the total crypto market cap. This figure is lower than BTC dominance during previous halving years (2016 and 2020) but has sparked significant concerns among altcoin investors. Currently, BTC price has recovered and entered a growth phase, while most altcoins have yet to return to their fair value range, with many still at their bottoms and continuing to make new lows.

Some analysts attribute this to the successful launch of spot BTC ETFs, which has diverted capital into BTC rather than altcoins as seen in the past. Alternatively, it could be argued that altcoins have yet to establish a clear and widely understood value proposition. While Bitcoin has solidified its position as "digital gold," Ethereum's role as either "digital oil" or a "decentralized Amazon" remains uncertain, and the same ambiguity exists for coins like BNB and SOL.

However, I have a different take on this. I think we've reached saturation point in the altcoin market. With hundreds of L1 and L2 blockchains, thousands of DeFi, GameFi, and NFT projects, the competition is overwhelming for investors. Scams are also driving investors away in droves. A market purge is necessary so that weak projects can either disappear or at least fall off investors' radars. Only the truly promising projects will survive and thrive with concentrated funding.

Given this, the current altcoin stagnation and delayed altseason are not only necessary but might be orchestrated by market whales. BTC will likely continue its solo rally while most altcoins will only see significant gains once BTC stabilizes at a higher price point, say $100K. This means we probably won't see an altseason in 2024. All eyes should be in 2025, which is likely to be a more volatile year.

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

Note:

• My opinion has been presented in a topic, on BitcoinTalk forum.
• This topic on AltcoinsTalks forum has included a minor change in the way my opinion is presented.
• This statement is to avoid accusations of plagiarism.

[Mia Chloe]

Well to be direct, bitcoin is quite the only crypto currency I think is trustworthy enough to be used as a long term investment. Altcoins do give huge profits too but that comes with a lot of strategies which also has to be spun over a relatively short period of time. Unlike altcoins, in the case of bitcoin all you literally have to do is just purchase your coins at the price best for you, Keep your keys safe, and HODL for as long as you wish or can.

Of course the market is still in a general pump and under normal conditions I would have expected the pressure to have reduced by now but it seems bitcoin still continues to make a new ATH almost literally every day. The pump is still in progress and at some point we should experience a pull back but I'm not sure when.

[Ujok]

We now have the US presidential election results and a new lower interest rate from FED. Everything seems very positive for the overall economy and the crypto market in particular. Unfortunately, only BTC has seen a positive impact, while most altcoins have yet to meet investor expectations in the market.

BTC Dom has climbed nearly 60%, meaning BTC's market cap now accounts for 60% of the total crypto market cap. This figure is lower than BTC dominance during previous halving years (2016 and 2020) but has sparked significant concerns among altcoin investors. Currently, BTC price has recovered and entered a growth phase, while most altcoins have yet to return to their fair value range, with many still at their bottoms and continuing to make new lows.

Some analysts attribute this to the successful launch of spot BTC ETFs, which has diverted capital into BTC rather than altcoins as seen in the past. Alternatively, it could be argued that altcoins have yet to establish a clear and widely understood value proposition. While Bitcoin has solidified its position as "digital gold," Ethereum's role as either "digital oil" or a "decentralized Amazon" remains uncertain, and the same ambiguity exists for coins like BNB and SOL.

However, I have a different take on this. I think we've reached saturation point in the altcoin market. With hundreds of L1 and L2 blockchains, thousands of DeFi, GameFi, and NFT projects, the competition is overwhelming for investors. Scams are also driving investors away in droves. A market purge is necessary so that weak projects can either disappear or at least fall off investors' radars. Only the truly promising projects will survive and thrive with concentrated funding.

Given this, the current altcoin stagnation and delayed altseason are not only necessary but might be orchestrated by market whales. BTC will likely continue its solo rally while most altcoins will only see significant gains once BTC stabilizes at a higher price point, say $100K. This means we probably won't see an altseason in 2024. All eyes should be in 2025, which is likely to be a more volatile year.

seeing the current market conditions are experiencing a price increase. especially bitcoin is the first look of everyone because it has increased so quickly, when after the US presidential election was decided the market immediately turned green and all coins were also affected because especially when bitcoin goes up then all coins are also affected.

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?
  

For now I still hold SOL and BNB coins and for now,  I have no intention of moving to Bitcoin.

[Bobcrypto]

Well to be direct, bitcoin is quite the only crypto currency I think is trustworthy enough to be used as a long term investment. Altcoins do give huge profits too but that comes with a lot of strategies which also has to be spun over a relatively short period of time. Unlike altcoins, in the case of bitcoin all you literally have to do is just purchase your coins at the price best for you, Keep your keys safe, and HODL for as long as you wish or can.

Of course the market is still in a general pump and under normal conditions I would have expected the pressure to have reduced by now but it seems bitcoin still continues to make a new ATH almost literally every day. The pump is still in progress and at some point we should experience a pull back but I'm not sure when.

I personally doubt if Bitcoin is the only trust worthy coin on the entire market, there are also good coins/token and doing  they are doing great.
Now, one of the drawback for altcoins is the Btc dominance factor. You know Bitcoin is the first crypto coin, and drive the crypto market almost all the time, unfortunately, as long as the dominant rate keep rising, there is the possibility for many altcoins to continue a pull back or continue to bleed. Dominant rates is a great concern on the performance of altcoins.
In addition, these are some other trustworthy coins on the POS chains like Ether, Sol, BNB, and the POW coins like Monero, Zcash etc.

[MUGNIA]

holding altcoins for BNB and SOL may not be a big mistake in this session, it's not too detrimental if used as a daily trade even for the upcoming bullrun in my opinion, for the clean market issue I don't really understand what it means
I think selling altcoins to focus on btc, currently not,  where btc is a long-term investment while I use altcoins as short-term investments that can provide benefits if they are increasing, even though btc is going down or correcting

[Findingnemo]

I'll share my opinion, even though the dominance increase it doesn't always good for the BTC, I remember that when every time BTC reached ATH in the last two cycles their dominance was around 40 to 50% only. People always like to invest on altcoins too especially whales since the manipulating power on Bitcoin might be lesser over the years while they can dump a particular altcoins in every way they want to.

[albon]

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

Yes i hold some new altcoins for this month like x, ton, dogs, gress. But already gress and x have caught the train of good profit lines so very soon i will sell these for increasing my profits target . But i want to hold dogs and ton coin for some more time because i bought these tokens at high price. In fact, since donald trump won the power the market is running green signal and almost all coins are seeing pump. Bitcoin pump in particular has surprised everyone and it expects more pumps. I think i have already lost time of buying bitcoin for long time but now it would be best to invest for a very short time.

[MrSpasybo]

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

1. I currently hold a portfolio of ALTs, including native tokens such as AVAX, ADA, ATOM, DOT, NEAR, ARB, IMX...

2. I believe what's happening now is more of a market cleansing of retail investors rather than crypto projects. Less experienced investors are being forced out and selling their tokens to whales at low prices.

3. I've started DCA both BTC and ALTs post-halving and am eagerly awaiting the altseason. I'm confident that an altseason will eventually arrive, so I won't be selling my ALTs prematurely before realizing profits. If an altseason doesn't occur, I'll liquidate all my crypto holdings by the end of 2025.

[Lucius]

Some people are surprised that altcoins don't follow BTC, I personally don't because people have obviously realized how much risk they are exposed to when they invest in them, and if someone invested in a well-known altcoin 2-3 years ago and that same one is worth 40-50% less today but then, then it is not difficult to draw the conclusion that something is not right.

Whether it's simply too many pump&dump schemes, oversaturation of the market with new coins, or some other reasons, it's hard to say, but I don't think that money flows exclusively to BTC by small investors, because it's more than obvious that the main reason for the price we have today is a huge influx of money through spot ETFs.

Maybe the reason why ordinary people invest less in cryptocurrencies today is simply that they don't have the surplus money they had 4+ years ago - inflation has unfortunately done a lot of damage and many people live much worse today than before the pandemic.

[electronicash]

isn't the purge started 2 years ago? 
there may only have people holding just a few top tokens by now. mostly top altcoins but we are now seeing ETH reaching $3k so this is a bit of glimpse for whats to come. i think we are already starting to climb. it may be late for an investor to sell his altcoins this time because he's going to get few satoshis now than selling his holdings a year ago.

if the investor been holding his token since the bear market, it wouldn't hurt holding it little longer.

[Faisal2202]

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

I was but unfortunately few weeks ago I had to sell them all now I am only holding few hundred dollars of ETH and maybe some other few alts, not so much that can make me some good money

I think yeah maybe this pump already has purged some while some are waiting for it to cross $80k. Weak investors must already be out from the market.

I intend to sell BTC instead of buying alts as I think I wasted some time in learning this fact that BTC is not for everyone like especially for those who have low capital but it is for those who have a lot of capital like in the millions at least I know I can even hold BTC of $100 but that's not really profitable instead if I would have held some alts they would easily be given me 2x to 5x in one month and BTC take a lot of time to give that. 

[KryptoBull]

I was but unfortunately few weeks ago I had to sell them all now I am only holding few hundred dollars of ETH and maybe some other few alts, not so much that can make me some good money

I think yeah maybe this pump already has purged some while some are waiting for it to cross $80k. Weak investors must already be out from the market.

I intend to sell BTC instead of buying alts as I think I wasted some time in learning this fact that BTC is not for everyone like especially for those who have low capital but it is for those who have a lot of capital like in the millions at least I know I can even hold BTC of $100 but that's not really profitable instead if I would have held some alts they would easily be given me 2x to 5x in one month and BTC take a lot of time to give that.

I think the unusual market fluctuations this season have really hit investors hard. A lot of people have given up and left the market because they couldn’t handle the temporary losses. BTC continues to do well, but altcoin investors are still taking losses. That’s a classic whale move – they force smaller investors to sell their altcoins at low prices.

BTC.D going up means if you’ve held BTC for the past two years, you’re still making more than most altcoin investments. But things will change when we enter altseason: when altcoins rise much faster than BTC. I hope you find and hold the best altcoins this season. ETH, for example, is very promising and deserves a spot in our portfolios.

[enoch_from_off]

I was but unfortunately few weeks ago I had to sell them all now I am only holding few hundred dollars of ETH and maybe some other few alts, not so much that can make me some good money

I think yeah maybe this pump already has purged some while some are waiting for it to cross $80k. Weak investors must already be out from the market.

I intend to sell BTC instead of buying alts as I think I wasted some time in learning this fact that BTC is not for everyone like especially for those who have low capital but it is for those who have a lot of capital like in the millions at least I know I can even hold BTC of $100 but that's not really profitable instead if I would have held some alts they would easily be given me 2x to 5x in one month and BTC take a lot of time to give that.

I think the unusual market fluctuations this season have really hit investors hard. A lot of people have given up and left the market because they couldn’t handle the temporary losses. BTC continues to do well, but altcoin investors are still taking losses. That’s a classic whale move – they force smaller investors to sell their altcoins at low prices.

BTC.D going up means if you’ve held BTC for the past two years, you’re still making more than most altcoin investments. But things will change when we enter altseason: when altcoins rise much faster than BTC. I hope you find and hold the best altcoins this season. ETH, for example, is very promising and deserves a spot in our portfolios.

I do think it can be said in the regard of newer alts, because for me - ETH and SOL pump alongside BTC, and one of the newer alts, which is ZETA (the one I got from an OKX promotion) - also goes well for now.
I do think the rally for BTC will continue and with it - we are going to get great results. Just don't get some newer alts for now.

[dave_strider]

I would like to know your opinion on this issue:

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

I was but unfortunately few weeks ago I had to sell them all now I am only holding few hundred dollars of ETH and maybe some other few alts, not so much that can make me some good money

I think yeah maybe this pump already has purged some while some are waiting for it to cross $80k. Weak investors must already be out from the market.

I intend to sell BTC instead of buying alts as I think I wasted some time in learning this fact that BTC is not for everyone like especially for those who have low capital but it is for those who have a lot of capital like in the millions at least I know I can even hold BTC of $100 but that's not really profitable instead if I would have held some alts they would easily be given me 2x to 5x in one month and BTC take a lot of time to give that.

It almost got to $80k today - so it's now wonder we are going to see it and maybe even $100k in the near future.
Just hold on to your bags and see the market magic at place.

[luckyledger]

• Are you holding altcoins? Which?
• Do you think a purge is underway in the market?
• Do you intend to sell altcoins to focus on BTC investment?

Yes i hold some new altcoins for this month like x, ton, dogs, gress. But already gress and x have caught the train of good profit lines so very soon i will sell these for increasing my profits target . But i want to hold dogs and ton coin for some more time because i bought these tokens at high price. In fact, since donald trump won the power the market is running green signal and almost all coins are seeing pump. Bitcoin pump in particular has surprised everyone and it expects more pumps. I think i have already lost time of buying bitcoin for long time but now it would be best to invest for a very short time.

Grass went from $0,7 to $3,0, which is beyond impressive for a utility based project during the bull. And I do think it's not the last time we will see it coming up in the news to come.
BTC is ready to be pushed into the new ATH, even bigger from the current one. We just need to wait for it. [/list]