Bitcoin spiked / boomed above $5000 last night, moving all the way up to $5,200. Since Bitcoin has been appreciating against altcoins, it might seem odd I recommend investing in them over Bitcoin. It all comes down to the market’s perception of Bitcoin Gold as “free money.” The more people who view Bitcoin Gold this way, the more likely it won’t behave that way. It’s just how markets work.
Bitcoin will likely appreciate over the next week and half, although I will still stick with altcoins on basis that each day is too risky for the potential reward. Could see Bitcoin approaching $6000, but even if it does, at some point the correlations between Bitcoin and altcoins should revert to their mean which will result in altcoins catching up.
In the event of a market slowdown as a result of a correction in Bitcoin, most participants in the market right now are aware that Bitcoin has accelerated much faster than other cryptocurrencies and hence I wouldn’t be surprised if altcoins do well here as they can appreciate against Bitcoin like they did in the September crash.
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