Altcoin Alert: Expert Willie Wu Sounds the Warning – Lower Your Expectations
Bitcoin (BTC) price chart as of 12:42 pm on the 28th. / Source = Bithumb
Major virtual assets are falling.
As of 12:42 pm on the 28th, Bitcoin (BTC) as of Bithumb is 94,639,000 won, up 0.06% from the previous day. Ethereum (ETH) fell 0.72% to 3.46 million won, Binance Coin (BNB) fell 0.06% to 820,000 won, Solana (SOL) fell 0.65% to 245,100 won, and Ripple (XRP) fell 0.56% to 716. Won was recorded.
The international market is on the rise.
At the same time, on CoinMarketCap, BTC recorded $67,745.52, up 0.99% from the previous day. ETH was traded at $2486.91, up 0.46% from the previous day, BNB was traded at $588.25, up 0.64%, SOL was traded at $175.48, up 2.18%, and XRP was up 0.27% at $0.5128.
The total market capitalization of virtual assets is approximately $2.29 trillion (approximately KRW 3,176.39 trillion), down 0.43% from the previous day. The crypto fear and greed index of virtual asset data company Alternative.me is in a ‘greed’ state at 72 points, down 2 points from the previous day.
It is observed that the short-term expected rate of return of altcoins will be lower than in the past.
According to Cointelegraph on the 27th (local time), virtual asset analyst Willie Wu predicted that as the altcoin market matures, expected returns will also decrease. He said, “It would be difficult to expect returns similar to the altcoin bubble in 2017.” However, Wu emphasized that this does not mean that the altcoin bullish cycle will disappear and said, “During periods when Bitcoin is strong, coins in the mid- to low-market capitalization may surge as risk-seeking investors flock to the market.” In addition, he added, “Never hang on to altcoins unless you have effective inside information, because it is an insider’s game where the casino operator ultimately wins.”
Generally, when BTC’s share (dominance) of the virtual asset market reaches its peak, funds begin to flow into the altcoin market. According to Cointelegraph, the current BTC dominance is 59.31%. Analysts see the peak of BTC dominance at 60%. Hashiki Capital, a virtual asset investment company, analyzed that “there is a high possibility that altcoins will begin to rally only when the BTC price exceeds $80,000.”