The crypto market is abuzz with speculation surrounding Bitcoin’s potential for a major bull run. While many investors are eagerly anticipating the next surge in profits, prominent trader Smiley Capital has issued a warning regarding its implications for altcoins.
In a recent post on X, Smiley Capital indicated that if Bitcoin surpasses the $70,000-$74,000 resistance level and enters a sustained bull run, altcoins might initially lag behind. He views Bitcoin’s current path as upward but not necessarily dominating, suggesting that a rapid climb to $120,000-$140,000 may not lead to immediate gains for altcoins.
The reasoning behind this potential discrepancy lies in liquidity. As Bitcoin explores new price levels, it could draw a significant influx of capital, diverting liquidity away from altcoins. This could result in Bitcoin achieving new all-time highs while altcoins struggle to keep pace.
However, Smiley Capital believes that once Bitcoin’s rally stabilizes and the initial excitement fades, altcoins may experience a significant value surge, leading to what he refers to as “god candles.” He advises traders who haven’t yet entered the altcoin market to act now, as this could be their last chance before a potential explosion in prices.
While Bitcoin’s dominance might be a short-term issue for altcoins, Smiley Capital predicts a shift in market sentiment after Bitcoin’s initial upward move concludes. He anticipates a 20-30% correction in Bitcoin, followed by a rotation of capital into Ethereum and eventually the broader altcoin market.
Despite this optimistic outlook, Smiley Capital urges caution. He believes that inexperienced traders should refrain from jumping into altcoins prematurely and should hold through the inevitable volatility until they witness significant market movements.
For those looking to navigate this potential market cycle, Smiley Capital recommends a strategy of rotating from Bitcoin and Solana into Ethereum, followed by tech coins, meme coins, and finally established “dino coins.”
The impact of Bitcoin as an institutional asset class will be a focal point at Benzinga’s upcoming Future of Digital Assets event on November 19th. This event will explore the latest trends and developments in the cryptocurrency landscape, offering valuable insights for both seasoned investors and newcomers.