Why Bitcoin, Ethereum May Not Be The Best Plays For The Next Bull Market


Since the launch of bitcoin, there have been massive gains recorded by those who got in early and held long enough. The same was the case with Ethereum, whose market cap grew into the hundreds of billions. However, the growth that these digital assets have already seen over the years has hindered how much they can still grow over the coming years. This is why investors look elsewhere for bigger gains.

Bitcoin, Ethereum Earnings Are Lower

During the last bull market, it became clear that bitcoin and Ethereum would no longer be able to provide the kind of returns that early investors got. During the previous cycle low, bitcoin fell as low as $6,000 but reached $69,000 during its peak. This was a 10x increase for the digital asset.

The case was similar for Ethereum, the second largest cryptocurrency by market cap, although it fared much better compared to bitcoin. It grew from its cycle low of around $100 to $4,800 at its peak. This was approximately a 500x increase for the digital asset.

Bitcoin (BTC) price chart from TradingView.com

BTC grows 10x | Source: BTCUSD on TradingView.com

However, their already massive growth has driven investors away from them, not because they are not good investments but because the potential to explode exponentially has been greatly reduced. An example is that from the current price of bitcoin, even if it reached $100,000 per coin, it would still be less than 10x growth.

The same with Ethereum, although the digital asset does carry more potential for greater growth compared to bitcoin because it is much younger. If ETH grew to $10,000 per token, it would hardly be a 10x increase.

Altkoins Take The Cake

Altcoins have been barred from market leaders like bitcoin and Ethereum when it comes to gains in the last bull market. Where these large digital assets made under 500x, smaller altcoins like Dogecoin and Shiba Inu recorded ROIs in the thousands.

Mainly, self-coins have been known for such returns, but altcoins from other spheres have also seen the same growth. FTM is a token that traded as low as $0.2 and peaked above $3.4 during the bull market. The price of DOGE made an impressive increase from $0.004 to $0.7 at the height of its rally.

However, these are just but a small example of the many ways altcoins have been great investments during the bull market. With the next bull market expected to occur in 2024, it’s no surprise when investors turn to smaller cap tokens in hopes of catching the next DOGE or SHIB.

Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.
Featured image from Medium, chart from TradingView.com

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