Bitcoin Price Tests $11,500 USD, But It’s Time To Stop Waiting For An “Alt Season,” Says Arca CIO
- Bitcoin is the “undisputed leader” as it has transcended crypto, says Arca CIO, Jeff Dorman
- Even if alt season never happens, we may still see week jumps in the short term but likely to “massively underperform” in longer-time
Bitcoin has surged more than 200 percent in the first half of 2019 as we went from about $3,800 to $13,900, before ending June at approximately $10,800.
This time, however, it’s different.
Typically, altcoins follow the leading cryptocurrency and surge along with it. But this time, though altcoins rose in value, not as much as they were expected to and many remained even flat.
This has the altcoin holders asking
And if Arca CIO is to believe, it may not come for many altcoins at all.
Jeff Dorman, Chief Investment Officer at Arca, an investment management firm that specializes in Hedge Funds, blockchain companies, and cryptocurrency investments took to Twitter to share that it’s time to stop waiting for the altcoin season as the crypto market is “way more developed” than it was in 2017.
“The notion that a rising tide will lift all boats should not, and most likely will not happen,”
In the past decade, we have come a long way, with thousands of cryptocurrencies now available in the market. But not all of these have projects have delivered or as Dorman says “have great promise.” Those that deliver, he says are “Have” tokens and “Have Nots” are those on which a majority of the world has given up.
The Have & Have Nots
The Haves, Dorman explains are those projects that solve a real problem. These tokens further fall into different sub-categories.
Bitcoin, he says falls into the first subcategory “Undisputed Leaders” which has gone mainstream and
“while it may still fail, it is miles ahead of the pack.”
When it comes to the subcategory clear-cut value, tokens like BNB, LEO, MKR, and ALGO can be easily modeled and accrue economic value.
Top coins like ETH, BAT, VET along with ZRX, REP, and ATOM fall under category C that have essential but unclear value as they are “incredibly” important to an ecosystem but their value propositions remain “murky.” In a bull market, because they are leaders in their fields, they will do well but not clear just how much.
Other top coins like XRP, EOS, TRX, NEO, and XTZ have huge networks and hard to bet against because they are live. This group, Dorman says stirs the most debate because of community fervor. These he says may rally more than category C because
“upside is higher, but so is downside.”
Category E tokens cover MANA, FOAM, FXC, HXRO and soon LINK. He explains just like traditional startups, once this category generates revenue, it will be valued purely on merit, not hype.
Meanwhile, Stellar and RHOC belong to “Have Nots” as the team hasn’t created any value propositions and “the market left it for dead.” However, they can potentially become “have” with clear progress but shouldn’t move just because of an
Dorman said even if alt season never happens, we may still see intra-day/week jumps in the short term but likely to “massively underperform” over longer time periods.
“It's time to recognize this asset class has matured. And when asset classes mature, returns start to bifurcate. The sooner people stop talking about a generic “alt season”, the faster the real alts will actually rally,”