- As altcoins become more uncorrelated with Bitcoin, investors are more likely to diversify their portfolio.
- In the mass sell-off of 2020 cryptocurrency prices took a nosedive, motivating investors to diversify.
- The correlation between Bitcoin, Ethereum and other cryptocurrencies has dropped on several occasions in 2021.
- Experts have predicted that investors’ altcoin holdings could increase in 2022.
Altcoins’ correlation with Bitcoin have continued dropping. Experts have predicted a spike in altcoin holdings of investors.
Investors could increase their altcoin holdings in 2022
The investors have assessed the risks involved in cryptocurrency transactions. The dropping correlation between Bitcoin and altcoins makes it a lucrative asset class for investors in 2022.
The crypto bloodbath of March 2020 triggered cascading liquidations. Most cryptocurrency prices plummeted as their correlation with Bitcoin and stocks dropped.
In 2021, Ethereum outperformed 17 of the top hedge funds. Altcoin gains are attracting investors to the asset class. @TheMoonCarl, a crypto analyst noted the spike in interest in altcoins.
Experts believe that Ethereum-killer Cardano’s price trend is showing no signs of an incoming bear market. Gert van Lagen, a crypto analyst and trader expects the uptrend to continue since the start of the bull market has not been broken.
@BitQueenBR, a pseudonymous crypto analyst has noted that Fantom is currently one of the strongest altcoins in the market. Fantom price broke out in a bullish consolidation and attempted to test resistance. The analyst is eyeing Fantom price for an opportunity to test a new all-time high.
$FTM one of the strongest alts in the current state of the market. Broke out bullish consolidation attempting to test resistance. Once it flips we ll get a nice opportunity to add before testing ATH against the USD pair arround 3.50 pic.twitter.com/sBV9EfqRwe
— BitQueenBR (@BitQueenBR) January 1, 2022
FXStreet analysts have noted that Axie Infinity, a play-to-earn token, shows a bullish reversal pattern with upside potential.