A closely watched crypto analyst thinks market participants will seek refuge in a group of altcoins after last week’s market-wide dip.
Pseudonymous analyst Altcoin Psycho tells his 501,200 followers on social media platform rotating funds in crypto assets with a market capitalization of at least $1 billion.
According to the analyst, the market crisis in recent days is making investors think twice about accumulating speculative altcoins.
“In my opinion, this outage results in a flight to quality from here for altcoins. Once the market can sustain a bid, mid/high-cap alts will likely be the first to move.”
The analyst too names three crypto subsectors that he thinks could be a game-changer for the digital asset industry.
“I think most of it [artificial intelligence-focused crypto projects are] vaporware, like 99%, but I think the 1% will change this sector much more than any other industry, with the exception of RWAs (tokenized real-world assets) and stablecoins.”
Him too repeats that artificial intelligence (AI) remains its top player for the 2024 bull market.
“Wrote in my predictions for 2024 that AI is my highest belief. I am shocked that it is now a contrarian approach, but that only makes me more optimistic.”
Earlier this month, Altcoin Psycho said that AI crypto projects are still undervalued compared to the market cap of two of the largest memecoins.
“The entire (crypto) AI industry has a market cap of ~$40 billion. Doge alone costs $27 billion. Shiba another ~$15 billion. It feels strange to say this, but AI tokens are still undervalued.”
At the time of writing, the top AI coins in the crypto space have a collective Market capitalization of $20.57 billion, according to CoinGecko.
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Generated image: Midjourney