GameStop

The high-risk, high-reward theory of altcoins might be tilting toward the former as big gains are now less likely due to weak narratives driving the crypto market, say crypto analysts.
“While tactical opportunities exist, the era of 100x returns may well be behind us,” 10x Research head of research Markus Thielen told Cointelegraph.
He cautioned that despite the market anticipating an altcoin bull market in 2024, “retail participation remains subdued, and few new projects have emerged that captivate non-crypto-native traders.”
Thielen said past altcoin bull markets had “distinct characteristics” that drew in more money, but this cycle has seen “tighter capital, evidenced by low total value locked and a dearth of venture capital investments.”
“Last cycle, the narrative that crypto could supplant traditional financial systems was widely embraced, but this cycle’s narratives are shorter-lived and lack substantial backing,” Thielen added.
Earlier this week, the Solana-based memecoin GameStop (GME) — which has no affiliation to the video game seller — rose 2,727% <a href="https://cointelegraph.com/news/gamestop-memecoins-pumped-bored-crypto-traders">alongside GameStop’s stock price spiking</a> after trader Keith Gill posted a meme from his “Roaring Kitty” X account for the first time in nearly three years. 
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 GameStop briefly spiked 2,727% amid GameStop stock price rise. Source: CoinMarketCap
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MN trading consultancy founder Michael van de Poppe claimed in a May 16 X <a href="https://x.com/CryptoMichNL/status/1791129582810079669" target="_blank" rel="noopener nofollow">post</a> that a portfolio mainly holding altcoins poses a “relatively huge” risk.
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 “What’s the downside of this bet? It’s relatively huge. At the moment of posting, I’m down around 20% already in a matter of 1-2 weeks on the overall investment.”
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Despite the risk involved, van de Poppe explained he recently sold all his Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) to shift to altcoins, claiming he “can lose 50-80%.”
However, crypto investor Fabio Andreatta is skeptical that there will even “be an altseason.”
Related: <a href="https://cointelegraph.com/news/altcoins-bottom-early-summer-bull-run-analyst">Altcoins will bottom in early summer before bull run — Analyst</a>
“All you did is increase your risk,” Andreatta said, responding to van de Poppe’s X <a href="https://x.com/andreattafabio/status/1791140244495933479" target="_blank" rel="noopener nofollow">post</a>. “You are very unlikely to outperform Bitcoin. Most altcoins will never reach their ATHs ever again.” 
Bitcoin’s dominance — its market share relative to the rest of the crypto market — shows the broader market has shifted capital away from altcoins
Bitcoin dominance is nearing a year-to-date all-time high, currently at 56.05%, up 2.12% over the past seven days, <a href="https://www.tradingview.com/symbols/BTC.D/" target="_blank" rel="noopener nofollow">according</a> to TradingView data.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-altcoins-bitcoin-prediction-charles-edwards-hall-of-flame/">Buy altcoins now, but sell before ‘mid-2025’: Charles Edwards, X Hall of Flame</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Altcoins a ‘relatively huge’ risk as days of big returns are gone, say analysts

Cointelegraph

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