Why Bitcoin, Ethereum May Not Be The Best Plays For The Next Bull Market

The launch of Bitcoin has seen huge gains for those who got in on the ground early enough and stayed there. Ethereum was no exception. Its market cap reached the hundreds of millions. The growth these digital assets experienced over the years has hampered their potential for further growth in the future. Investors are now looking for greater returns.

The Bitcoin Gains are Lower

As a result of the bull market that ended in 2017, it was clear that Ethereum as well as bitcoin were not able to provide the returns early investors enjoyed. Bitcoin had fallen to $6,000 during the last cycle, but reached $69,000 at its peak. The digital asset saw a 10x increase in its value.

Although it was the second largest cryptocurrency in terms of market capital, Ethereum’s case was very similar. However, its performance had been much more impressive than bitcoin. From a low point of $100, it had grown to $4800 by its peak. It was a growth rate of approximately 500x for digital assets.

Bitcoin (BTC) price chart from TradingView.com

BTC increases 10x| Source: BTCUSD on TradingView.com

Their already huge growth has made them less attractive investments. The potential for exponential expansion has also been reduced. An example is that from bitcoin’s current price, even if it were to reach $100,000 per coin, it would still be a less than 10x growth.

This is true for Ethereum as well, but the digital currency has a greater potential to grow than bitcoin because it’s much more young. If ETH could grow to 10,000 tokens, that would only be a tenx growth.

Altcoins Take The Cake

Altcoins have surpassed market leaders Ethereum and Bitcoin when it comes down to gains in last bull market. While these digital assets did not do below 500x, altcoins smaller than Dogecoin and Shiba Inu saw ROI in the thousands.

These returns were most notable for meme coins, although altcoins of other fields have seen similar growth. FTM was a token which traded at $0.2 as well as peaked at $3.4 in the bull market. DOGE’s price had made an impressive run-up from $0.004 to $0.7 at the height of its rally.

These are just a few examples of altcoin’s many benefits during the bull markets. It is not surprising that investors have begun to look for smaller caps tokens as they try to capture the next DOGE, or SHIB.

Disclaimer: These views are the author's and do not necessarily reflect those of Bitcoinist. Bitcoinist advocates creative and financial freedom.
Featured image taken from Medium. Chart by TradingView.com

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