Samson Mow: Will Bitcoin explode or fall amid the altcoin frenzy?

robot
Abstract generation in progress

According to Bitcoin pioneer, Samson Mow, Bitcoin has just reached a new all-time high and the next move will either be a rise to the sky into an unprecedented price zone, or a pause to make way for the upcoming altcoin season.

As of the time of writing, the price of Bitcoin has reached 121,853 USD, rising to the sky by 2.1% in a day and pushing the total market capitalization of crypto to a record level of 4.19 trillion USD.

Samson Mow said there are currently two scenarios for Bitcoin:

"The price will rise to the sky, sucking up all the liquidity and causing altcoin to drop 30–40%" or "the altcoin frenzy" reaches its peak, triggering a large sell-off when the "holder's dilemma" becomes unbalanced, causing BTC to drop slightly before bouncing back as altcoin plunges.

This Bitcoin maximizer also does not forget to mention Ethereum (ETH) when comparing market capitalization and says:

"No matter what, ETH cannot be worth 4,600,000 BTC. This coin will have to adjust sooner or later."

bitcoinBTC price chart 3 hours | Source: TradingView## The dilemma of holder

Mow mentioned the "holder's dilemma" earlier this week when predicting that ETH investors would soon start panic selling and reallocating funds back to Bitcoin.

He believes that ETH will face many difficulties in surpassing its historical peak because "the closer it gets to that psychological threshold, the stronger the selling momentum becomes." According to Mow, this principle does not seem to apply to Bitcoin.

In the past 30 days, ETH has outperformed Bitcoin with a rise to the sky of 60%, while BTC only increased by 4% during the same period.

Altcoin is "too hot"

CEO Jan3 also stated that there will be many new ATH levels for Bitcoin, "but I think we will see a correction because altcoin is too hot."

When the "altcoin frenzy" passes, Bitcoin will break out. He said:

"This has always been the scenario until now."

According to TradingView, the dominance rate of Bitcoin has decreased by about 10% since the end of June, falling below 60% this week – the first time since January. Sharp drops in Bitcoin's dominance rate are often a historical signal that the altcoin season is about to begin.

The era of DeFi has arrived

Some industry experts agree that investor interest in Bitcoin may cool down and DeFi will become the focus.

"We believe that ETH and DeFi assets will continue to excel at this stage, supported by the regulatory environment and the process of tokenizing real assets (RWA)," Henrik Andersson – Investment Director of Apollo Capital shared.

You said the total value lock (TVL) in DeFi is at its peak and rising to the sky, driving DeFi revenue, while emphasizing:

"We are entering a new phase where BTC becomes a low beta asset, with average annual volatility over 30 days dropping to just 23%."

The research director at LVRG Research, Nick Ruck, stated that BTC could consolidate around the current level.

"The decline in dominance and the increase in altcoin trading volume indicate that the altcoin season is beginning, led by the dominance of ETH and speculative capital flowing into DeFi tokens."

Minh Anh

BTC-2.2%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)