Bitcoin’s volatility could prompt investors to hold more altcoins in 2022
As altcoins become less correlated with Bitcoin, investors are more likely to diversify their portfolios. During the 2020 sell-off, cryptocurrency prices plunged, motivating investors to diversify. The correlation between Bitcoin, Ethereum, and other cryptocurrencies has dropped several times in 2021. Experts have predicted that investors’ altcoin holdings could increase in 2022.
The correlation of Altcoins with Bitcoin continued to decline. Experts predicted an increase in investors’ holdings of altcoins.
Investors could increase their holdings of altcoins in 2022
Investors have assessed the risks involved in cryptocurrency transactions. The declining correlation between Bitcoin and altcoins makes it a lucrative asset class for investors in 2022.
The crypto bloodbath of March 2020 sparked cascading liquidations. Most cryptocurrency prices fell as their correlation with Bitcoin and stocks declined.
In 2021, Ethereum outperformed 17 of the top hedge funds. Altcoin’s gains are attracting investors to the asset class. @TheMoonCarl, a crypto analyst noted the spike in interest in altcoins.
Experts believe the price trend of Ethereum Cardano’s killer shows no signs of an entering bear market. Crypto analyst and trader Gert van Lagen expects the uptrend to continue as the start of the bull market has not been interrupted.
@BitQueenBR, a pseudonymous crypto analyst noted that Fantom is currently one of the most powerful altcoins in the market. The Fantom price broke out in a bullish consolidation and attempted to test resistance. The analyst sees the Fantom Prize for an opportunity to test a new all-time high.
$ FTM one of the strongest alts in the market today. A bullish consolidation broke out trying to test resistance. Once it turns around we will have a great opportunity to add before testing the ATH against the USD pair around 3.50 pic.twitter.com/sBV9EfqRwe
– BitQueenBR (@BitQueenBR) January 1, 2022
FXStreet analysts noted that Axie Infinity, a gambling token for winning, exhibits a bullish reversal pattern with upside potential.
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