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

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Since the launch of bitcoin, huge gains have been made by those who jumped in early and held on long enough. The same was the case with Ethereum, whose market cap grew to hundreds of billions. However, the growth that these digital assets have already experienced over the years has put a brake on how much they can grow in the coming years. This is why investors elsewhere are looking for bigger profits.

Bitcoin, Ethereum Profits Are Lower

During the latest bull market, it became clear that bitcoin and Ethereum will no longer be able to deliver the kind of returns that early investors had gotten. During the previous low cycle, bitcoin had fallen to $6,000, but had reached $69,000 during its high. This was a 10x growth for the digital asset.

The case was comparable to Ethereum, the second-largest cryptocurrency by market capitalization, although it had performed much better compared to bitcoin. It had grown from its cycle low of about $100 to $4,800 at its peak. This was about 500x growth for the digital asset.

Bitcoin (BTC) price chart from TradingView.com

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

However, their already massive growth has kept investors away from them, not because they aren’t good investments, but because the potential to explode exponentially has been greatly reduced. An example is that from the current price of bitcoin, even if it reached $100,000 per coin, it would still be growing less than 10x.

The same is true for Ethereum, although the digital asset has more potential for greater growth compared to bitcoin because it is much younger. If ETH grew to $10,000 per token, it would barely be a 10x growth.

Altcoins take the cake

Altcoins was ahead of market leaders like bitcoin and Ethereum when it came to gains in the latest bull market. While these large digital assets underperformed 500x, smaller altcoins such as Dogecoin and Shiba Inu had posted ROI of thousands.

Meme coins in particular were notorious for their returns, but altcoins from other realms had seen the same kind of growth as well. FTM is a token that was as low as $0.20 and peaked above $3.4 during the bull market. DOGE’s price had jumped impressively from $0.004 to $0.7 at the peak of its rally.

However, these are just a small sample of the many ways altcoin was a great investment during the bull market. Since the next bull market is expected to happen in 2024, it’s no surprise that investors are turning to smaller capitalization tokens in hopes of catching the next DOGE or SHIB.

Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.
Featured image from Medium, chart from TradingView.com

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