No ‘40% in a Day’ Altcoin Pumps Coming This Bull Market: Mike Novogratz

By CCN:If you’re on the edge of your seat for the “crazy altcoin pumps” that the market experienced in the 2017 bull run, you might be waiting a long time. Michael Novogratz, who is at the helm of crypto merchant bank Galaxy Digital, suggests that bitcoin will leave its smaller peers in the dust.

Ran NeuNer, the host of CNBC’s “Crypto Trader,” got the conversation started on Twitter when he observed:

“The market is running but we still haven’t seen the crazy alt pumps, pumps where coins do 40% in a day…is it coming?”

That’s when Novogratz burst the bubble, so to speak, responding that things have changed since the last bull run.

“Not this time. Market getting smarter. BTC will outperform.”

Bitcoin’s dominance is currently hovering at 56.7%. On this date in 2017, bitcoin’s dominance was nearly 10 percentage points lower at 47%.

No ‘40% in a Day’ Altcoin Pumps Coming This Bull Market: Mike Novogratz 1

Bitcoin’s dominance has evolved over the years. | Source: CoinMarketCap

What’s Changed?

As Novogratz suggested, the crypto market has matured since the last time the bulls were in control. Regulators have clamped down on ICO deals, not to mention that the freefall in altcoin prices throughout crypto winter was more severe than that of bitcoin, with some coins losing all of their value.

Scams such as BitConnect have been weeded out of the market. That coin saw its worth plummet from as high as $400 to just pennies before collapsing entirely. Certain crypto exchanges have also been exposed for faking trading statistics.

Meanwhile, big investors have more options now that ever considering there are regulated custody and trading platforms from the likes of bitcoin-focused Fidelity and Bakkt that are adding a great deal of heft to the market. Not to mention the fact that tech giant Microsoft is building on the Bitcoin blockchain. The bull case for bitcoin is undeniable. Still, altcoins are near and dear to the hearts of many crypto investors.

Crypto trader “DonAlt” on Twitter said he currently has zero exposure to alts. He provided the following altcoin analysis. He believes that the “dollar value of [ETH, XRP, BCH, LTC, ADA, XMR, XTZ] to be significantly higher in three-to-six months” amid what he describes as “clout chasing.”

At least it’s a far cry from these days –

Smart Money, Dumb Money

Esteemed trader Peter Brandt seems to suggest that the more things change in crypto, the more they stay the same. He told NeuNer in an interview broadcast during Blockchain Week:

“[Bitcoin is] going to make dumb money chase it. No matter what, it’s going to make dumb money chase it…Smart money will buy significant corrections in this market of $500 to $1,000 and dumb money will chase it.”

[embedded content]


Bitcoin’s Volatility Will Subside as Mainstream Adoption Materializes. Will Altcoins Follow?

In a recent Galaxy Digital Research Note, Novogratz’s firm explained how the volatility surrounding the bitcoin price is destined to be mitigated, saying:

“Therefore, as bitcoin adoption increases (and bitcoin market cap increases given its fixed, known supply), each incremental adopter will by definition have a decreasing impact on the price of bitcoin, leading to a dampening of volatility in the long run. So, while bitcoin’s volatility is natural and quite expected during its early stage of global adoption, this volatility should not be confused with its expected volatility at mature adoption, whereas its properties make it very much a fundamentally good store of value.”

Considering that altcoin performance is correlated with the bitcoin price, perhaps that will lead to less volatility in some altcoins as well.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin55,434 1.16 % 1.45 % 5.88 %
Ethereum4,399.5 2.11 % 1.90 % 2.58 %
Binance Coin602.13 1.34 % 2.43 % 5.65 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana222.53 1.45 % 2.05 % 6.07 %
Cardano1.600 1.13 % 5.92 % 4.73 %
XRP0.9453 1.78 % 2.35 % 9.33 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

Bitcoin (BTC) $ 55,495.00
Ethereum (ETH) $ 4,397.22
Binance Coin (BNB) $ 601.72
Tether (USDT) $ 0.994208
Solana (SOL) $ 221.64
Cardano (ADA) $ 1.59
XRP (XRP) $ 0.944791
USD Coin (USDC) $ 0.995514
Polkadot (DOT) $ 34.61
Dogecoin (DOGE) $ 0.202447