One Metric Flashing Bullish Signal for High-Quality Altcoins Amid ‘Bombed Out’ Sentiment, Says Crypto Analyst
Real Vision’s chief crypto analyst, Jamie Coutts, is leaning bullish on altcoins despite the prevailing bearish sentiment.
Coutts says that sentiment is “so bombed out”, as evidenced by the ratio between the equal cap weight and the market cap weight of the top 200 largest altcoins by market cap, which is at a four-year low.
According to Coutts, the ratio suggests that some altcoins are on the cusp of a bullish reversal.
“Structural issues of investing in the asset class aside, where we are today are levels where, in the past, you start to see high-quality altcoins start to recover.”
Source: Jaime Coutts/X
Turning to Bitcoin ( BTC ), Real Vision’s chief crypto analyst says that the Market Value to Realized Value (MVRV), a metric used to assess the average profitability of coins in circulation, is suggesting that Bitcoin reached a cycle peak in the fourth quarter of 2024 and that “we should brace for the bear market.”
Source: Jaime Coutts/X
According to Coutts, various factors could determine whether Bitcoin stays bearish or resumes an uptrend.
“Firstly, every cycle/regime is different. This time, we have a US administration hellbent on closing the [federal budget] deficit – that is creating more uncertainty and will impact dynamics going forward.
But is China/Europe better off or worse off today versus four to six years ago? They will likely need to do more this time and fill the void if the U.S. Treasury/Federal Reserve is more constrained.”
Source: Jaime Coutts/X
The Real Vision chief crypto analyst says that while the MVRV metric suggests Bitcoin has already reached the current cycle’s peak, a lot will depend on global liquidity conditions. According to Coutts, Bitcoin could enjoy more upside if the global liquidity improves but could be primed for a downward trajectory if the liquidity stays constrained or falls further.
Follow us on X , Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Generated Image: Midjourney
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Mars Morning News | Starting this Thursday, the United States will fill in missing employment data and release a new batch of economic data
The United States will fill in missing employment data and release new economic data. The Coinbase CEO is looking forward to progress in crypto regulatory legislation. Market participants predict the market is nearing a bottom. Phantom has launched a professional trading platform. Trump hints that the candidate for Federal Reserve Chair has been decided. Summary generated by Mars AI This summary was generated by the Mars AI model, which is still being iteratively updated for accuracy and completeness.
Countdown to a comeback! The yen may become the best-performing currency next year, with gold and the US dollar close behind
A Bank of America survey shows that more than 30% of global fund managers are bullish on the yen's performance next year, with undervalued valuations and potential central bank intervention possibly paving the way for its rebound.
Gemini 3 arrives late at night: surpasses GPT 5.1, the era of Google large models has arrived
Google has defined it as an “important step towards AGI” and emphasized that it is currently the world’s most advanced agent in terms of multimodal understanding and depth of interaction.
Cloudflare Outage Sparks Global Disruptions Across Crypto Platforms and Major Web Services
Trending news
MoreCrypto prices
More
