Altcoins Are Running. Here’s What I’m Watching Now.

Speculative enthusiasm is back, but watch how the market structure evolves.

When Bitcoin made its most recent run, you might've felt bad about your altcoins.

Who could blame you? Many were down 90% since the beginning of the year.

Now, we’re getting the altcoin pump you’ve wanted.

If your portfolio tracker isn’t clear enough, you can see this pump on my chart of altcoin dominance, which strips out BTC, ETH, and the big stablecoins to see how much money’s going into the millions of smaller tokens rather than the big ones. The pump is clear.

This is also no surprise. Altcoins often pump at the end of Bitcoin’s rallies.

Hakuna matata

Are you excited for altseason? Are you worried this is one more false breakout, the latest in a series of fake pumps that let you down this year?

We’re still in the ideal zone, so I wouldn’t worry about it.

Yes, alts have started to run but you’ll get 50-80% swings in all market conditions. If you're concerned, you may want to play tight rather than let the position run (i.e., sell some after early gains, trim at a fixed price, or set a trailing stop-loss).

Once (IF) we get to the inflection zone in that chart above, we can think about a wholesale exit. Otherwise, let’s take it in stride. All good things will come to an end. Usually, when you least expect it. Plan accordingly.

It’s the same until it changes

One more thing.

This is a proprietary chart to help my Crypto is Easy newsletter subscribers navigate the swings in flows from Bitcoin to altcoins and back.

Notice the change in market structure since 2020. Do you see how the surges have peaked at sequentially lower levels for several years?

It’s entirely possible the ideal zone will fail at some point and the inflection zone will change.

We’ll see. One more thing to keep our eyes on.

I talk about this and other topics in the Crypto is Easy newsletter. Head over there to learn more.