3 Genuine Reasons I Am Cautious About Altcoins Entering the New Year

In crypto, we should always expect the unexpected. To base these hypotheses, many formulate theories about cycles, macroeconomic events, investor psychology, and technical patterns. So, here’s my take.

Scott Debevic

--

Photo by Sergio Capuzzimati on Unsplash

Every few months, I see a story about someone dying as they try taking a selfie at a cliff’s edge, near a waterfall, or on a rooftop. As much as I want to feel sympathetic toward the victim, they typically avoid posted warnings or lack common sense. Then again, sometimes, I’m just an asshole. I’ve done all sorts of dumb things, like riding in the bed of a pickup truck, being a passenger with a drunk driver, and eating Sizzler.

Luckily, these bad decisions didn’t result in a tragic accident. Then, other bloggers could write about what kind of an idiot I was. I made the dumb decisions knowing they weren’t the brightest or safest thing to do.

The purpose of this post is to share some of the warning signs I see in the altcoin market today. And while some tokens and coins may seem like screaming buys today, they may become irresistible buys soon.

I do still own and hold many altcoins. Most of them I either have long-term convictions in or stubbornly refuse to sell. However, I have been concentrating on accumulating Bitcoin during this bear market and resisting the temptation of the coins 90–99% off their highs.

Fundamental Reason #1: Crypto Volume has dried up

Historically, the crypto market is more volatile when the volume is high. You may be thinking, “No shit, genius. And people usually stink when they are covered in sweat.” But the volume right now is especially meager.

Graph from Coingecko.com

It may be hard to see, but the bars on the graph above reflect trade volume. Almost every day in December, the daily volume was below $50 billion. However, during the bull market, the daily volume was consistently 3–4 times higher.

--

--

Scott Debevic

My goal is growing wealth and earning passive income. Mainly focused on Bitcoin and crypto. Feel free to contact me at: scottdebevic@gmail.com