Cryptocurrencies with market values under $10 billion might present investment opportunities following a decline since Bitcoin hit a new high in early 2024. According to Jamie Coutts, chief crypto analyst at RealVision, smaller crypto assets have faced a downward trend since their peak in March, as stated in a June 13 post on X.
Insights from a Prominent Analyst
Bitcoin reached its all-time high of $73,679 on March 13 but dropped approximately 6% to $67,126 last week, based on Tradingview data. Jamie Coutts expressed that if the current market correction is a standard mid-cycle event, opportunities may arise in mid and small markets once stability returns.
According to Bitformance’s data, the top 200 weighted index, which equally weights cryptocurrencies regardless of market value, has decreased by over 30% in the last three months compared to the market value index weighted by cryptocurrency market values.
What’s Influencing the Altcoin Market?
The data indicates that smaller cryptocurrencies have underperformed against larger counterparts in the market value index. During the same three-month period, Bitcoin and Ethereum only saw declines of 11% and 5%, respectively. Metaverse-related tokens recorded the lowest returns, with a negative return of 44.13%. Metaverse tokens like The Sandbox and Decentraland, valued under $1 billion, dropped over 15% last week according to CoinGecko.
Key Takeaways for Investors
For investors considering these smaller cryptocurrencies, here are some notable points:
- Market corrections can present entry points for mid and small market assets.
- Investors should monitor the performance of the top 200 weighted index for broader market trends.
- Metaverse-related tokens currently show significant underperformance.
This comes as institutional interest in cryptocurrencies beyond Bitcoin and Ethereum continues to rise. On June 6, Franklin Templeton revealed its plans to explore a new crypto fund for institutional investors focused on altcoins, although the specific altcoins were not disclosed. However, the firm has recently commended the Solana network.