Following the release of the U.S. Producer Price Index (PPI) inflation report on 14th March, the cryptocurrency market, led by Bitcoin [BTC], witnessed a notable downturn.
Bitcoin, the pioneering cryptocurrency, alongside other major altcoins like Ethereum [ETH], Dogecoin [DOGE], Ripple [XRP], and Solana [SOL], experienced significant declines.
Bitcoin, which had been on a bullish trend, saw its value drop from $73,000 to below $68,414 at press time, marking a 6.80% decrease. This abrupt shift in the crypto landscape occurred amid concerns surrounding inflation and its potential impact on the broader financial markets.
Remarking on the same, crypto visionary, Samson Mow said,
“I’m expecting alts to crash in the coming weeks.”
He further noted,
“They’ve been tracking Bitcoin gains post ETF approvals, but obviously they lack the $500M to $1B daily inflows we have. That should be the main indicator that their gains are unsustainable.
Anticipating altcoin correction
Renowned for his bullish outlook on Bitcoin and his advocacy for a remarkable $1 million per BTC valuation, Mow has brought attention to the sustainability of altcoin gains in comparison to Bitcoin’s consistent performance.
Drawing attention to the substantial difference in daily inflows between Bitcoin ETFs and other cryptocurrencies, Mow has raised concerns about the lack of significant investment influxes in altcoins when compared to Bitcoin.
This, he argues, makes the gains of altcoins inherently precarious.
Mow has particularly highlighted the staggering market capitalization of altcoins such as Solana, contrasting them with established companies like MicroStrategy (MSTR).
“Solana market cap is $73B, whereas $MSTR is $30B. That’s just nuts. Alts are overdue for a major correction.”
This juxtaposition, he suggests, reveals an imbalance in the market. He anticipates a rare scenario wherein there’s a substantial dip in altcoins while Bitcoin continues to rise, diverging from the usual pattern.
Mow’s cautionary message to crypto investors
At present, data from the Total 2 Index showed that the altcoin market capitalization was $1.177 trillion, marking a 51.62% increase since the beginning of the year. Bitcoin’s dominance, with over $1.34 trillion in capitalization and a 61.61% value increase, underscores Mow’s caution.
Hence, his warning urges investors to navigate the evolving crypto market dynamics carefully. Amid growing speculation and greed, his words highlight the inherent risks of chasing lofty gains in the altcoin sector.