In his latest video, analyst, Josh, discusses the current state of the altcoin market. He expresses concern about the clear downward trend in the altcoin index, which he says has been ongoing for a "multi-year" period.
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According to Josh, even individual altcoins, such as Solana, are struggling, and it is "exceedingly rare" to find any altcoins that are performing well during this period. He advises investors to "size down" their altcoin portfolios, as the trend is not their friend.
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Josh explains that the weakness in altcoins is likely due to the overall decline in global liquidity, which he believes is more important than the absolute value of liquidity.
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He notes that while the stablecoin market cap has been rising, the altcoin market cap has not seen a similar increase, suggesting that there is not enough demand to drive altcoin prices higher.
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Josh also discusses Bitcoin's dominance, which has been on an upward trend since early 2023. He suggests that this trend is likely to continue, as investors tend to seek safety in Bitcoin during recessionary environments.
Overall, Josh paints a bleak picture for the altcoin market, stating that it "just doesn't make sense to hold alts here." He believes that the technical indicators point to further weakness in the altcoin space and advises investors to be cautious and avoid getting caught up in the "tribal" mentality that often surrounds certain altcoins.
