Tears Time: Traders Cry-Out Watching Bitcoin Destroying Their Altcoins – Will Their Time Come?
Bitcoin has been on a huge bull run since the end of March 2019 with the coin reaching almost $14,000 so far. While Bitcoin price increase is undoubtedly positive for crypto traders holding the coin, it could mean the opposite for altcoin holders.
Sometimes there’s a correlation between Bitcoin and altcoins, meaning that when BTC’s price is increasing, altcoins are crashing Bitcoin-wise. During the recent bull-run, some altcoins are even losing their USD value. This is the time of the market cycle when many crypto traders, not Bitcoin HODLers, have cried out loud about their portfolio going in the wrong direction, despite the Bitcoin party.
“I am 100 % into altcoins, portfolio went down to half after btc crossed $10k.”
“I’m currently 63% BTC, this was about 40% a while ago but bitcoin fixed that,” another anonymous trader complained.
As always, there were the ones expecting the next Altcoin Season to come:
“I have alts but I’m in green. Depends on which alts you choose. But don’t worry about it. Crypto is so volatile that I don’t believe naysayers saying there won’t be an alt season,” a Reddit user stated.
Majority Of Traders Hold Altcoins
In April, according to the survey among 10,000 traders, 47% of crypto traders are holding the majority of their portfolio in altcoins. Furthermore, 17% of them stated that altcoins add up to 40 and 60 percent of their portfolio, while 13% reported between 20 and 40 percent.
Therefore, it can be said that the vast majority of crypto traders either prefer altcoins to BTC or they add up a significant percentage in their portfolio.
Experts: Keep Your Risk Low With a Balanced Portfolio
The reason behind the mentioned ‘altcoin love’ of crypto traders is that altcoins have proved numerous times that they can outperform Bitcoin: In March, Everex (EVX) had marked huge gains with a price increase of 275% in a matter of two days.
While holding coins other than BTC is undoubtedly not a bad idea from diversification reasons, it was proved more than once in the short history of crypto that Altcoins are bleeding their value over time.
To keep your risks at the minimum, you should consider having a balanced portfolio, with proper risk management between Bitcoin and altcoins, and more importantly, which altcoins to hold.
As mentioned before in this article, there can be a correlation between Bitcoin and altcoins (when BTC goes up, altcoins go down). However, since 2018, it has become unclear whether the crypto market still has a clear correlation between Bitcoin and Alts.
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