According to a cryptocurrency analyst, traders purchase memecoins too soon, so we have yet to witness this altcoin season.
One analyst stated that although cryptocurrency traders are excited about a possible altcoin season, it won’t happen precisely as most anticipate since novice traders would rush to purchase the riskiest assets too quickly.
In an August 29 Rough Consensus podcast episode, Glassnode principal analyst James Check stated, “The joke has been told, everybody knows the punchline, and they’ve just gone straight to the punchline, and it is just not funny anymore.”
Traders made an effort to beat the market.
Check claimed to have outsmarted the market by purchasing the most popular memecoins as soon as possible after examining trading behavior during the 2021 bull run and comparing it to 2024.
Memecoins have historically surged around the end of a more significant market rise, but this time, the assets have been rising more quickly than in previous bull runs.
Check outlined the “everything bubble” of 2021, which included the stunning capital waterfall, L1s, DeFi, Bitcoin, Ethereum, and monkey JPEGs, among other things. He said that many people new to cryptocurrency had discovered that buying the most foolish coin was the fastest way to get the most money.
Check stated that once the spot Bitcoin ETF (BTC$59,029) was approved on January 10, traders started to take advantage of the sudden spike in the price of Bitcoin to make a bet on memecoins.
Traders went directly to PEPE leaving Altcoin
“They went straight to PEPE token” rather than purchasing assets farther up the risk curve or app utility tokens.
A few traders made mouthwatering returns in the first half of 2024, with PEPE PEPE$0.000008 posting notable gains. One astute PEPE trader made $46 million on May 15, more than 15,718 times his initial $3,000 investment in April.
Check claimed that “there was this gap in the middle where no one touched anything,” even though the price of PEPE and other significant memecoins, such as Dogwifhat (WIF), was surging.
However, some analysts and traders see the declining cryptocurrency prices and lower-than-expected trading volumes as a bullish indication for future price movement.
Crypto trader Luke Martin said that “altcoins are currently at the’ sell your house to buy more level” to his 331,500 X followers on August 29.
According to Martin, Bitcoin’s price increased sixfold in the second half of 2020, when it was at this point in the summer.
In the following six months, the price “went vertical from 10k to 60k,” according to Martin.