Trader Who Called Current Bitcoin Rally Warns of Altcoin ‘Dot Com Bubble’
The trading guru says this year’s moonshot for bitcoin will not spark a knock-on effect for altcoin markets.
Writing on social media, Brandt, who has become a vocal source on cryptocurrency prices, said that unlike the previous bull market cycle in 2017, bitcoin’s gains would not have a knock-on effect elsewhere. He summarized:
“Cryptomaniancs expect alts to do so again - they may be very disappointed.”
Brandt made the comments as BTC/USD bounced off its local lows of $10,380 to challenge $12,000 once again.
Having reached $13,800 this week, the subsequent correction spelled misery for altcoin traders, with many tokens losing far more than bitcoin while subsequently failing to recover their losses.
For Brandt, the phenomenon has one classic predecessor - the dotcom boom of the early 2000s.
“Following 2001-02 tech collapse, dotcoms with real value exploded,” he noted. “The ‘alt’ .coms went bankrupt.”
Brandt has an admirable record when it comes to bitcoin predictions. Having previously foretold the 2018 bear market, earlier in June, he told followers not to believe BTC/USD would stop at its then local highs around $8,000.
According to CoinMarketCap, there are now 2,291 altcoins with a trackable blockchain and activity. As bitcoin continues to make up ground towards $20,000, however, their overall market share is at its lowest in two years.