Crypto investors favouring altcoins in spite of poor performance
- Crypto investors still prefer investing in altcoins, despite their poor performance in recent months.
- Coinbase shows that 75% of investors go for assets other than Bitcoin, trying to diversify their portfolios.
- Many believe that the altseason is about to arrive, and they treat BTC as a stable asset.
New data published by the largest cryptocurrency exchange Coinbase, shows interesting details regarding investors’ interest in crypto. It would appear that, despite their poor performance, a lot of altcoins are still in quite high demand.
Investors believe that the ‘altseason’ is coming
As many have likely noticed, altcoins have had a particularly bad past several months. In fact, this is one of the reasons why Bitcoin managed to become as dominant as it currently is. The coin recently hit its yearly highs, as investors continued to abandon altcoins and move their funds towards the world’s first crypto.
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At least, that was a common belief. However, the new data shows that it is not entirely accurate, and that many investors do end up buying altcoins.
As for why that is, nobody can tell with certainty, but the popular theory revolves around the belief that the ‘altseason’ will eventually come. Basically, investors expect that altcoins will eventually skyrocket, similarly to what happened in 2017. If this were to happen, many would stand to see major gains.
However, right now, Bitcoin still remains highly dominant, with its dominance sitting at 67%. While BTC dominance is usually as subject to change as the coin’s own price, it managed to remain roughly at this level for several days now.
Also, this is only slightly below the coin’s current yearly high of 68%, which it saw around 2 weeks ago. But, when compared to the yearly lows, which were under 60%, the current state is a significant improvement.
75% of investors straying from Bitcoin
It would seem that many investors see Bitcoin as the lowest-risk asset, likely due to its size, history, liquidity, name, and other similar aspects. Right now, investors appear to be optimistic, which is why they are giving altcoins a chance. However, they are ready to return to BTC should something happen.
But, Coinbase noticed that around 75% of investors on its platform are willing to invest in assets other than Bitcoin, and diversify their portfolios. “Among customers with at least 5 purchases, 60% start with Bitcoin but just 24% stick exclusively to Bitcoin. In total, over 75% eventually buy other assets,” the exchange says.