Josh takes a cautious but realistic approach to the state of altcoins. He describes the market as a mixed bag, with some altcoins showing signs of life while many remain stagnant.
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The global liquidity, which impacts the market, has ticked down due to geopolitical issues, particularly in the Middle East. This has led to a stronger dollar, which isn't favorable for altcoins, as they tend to perform inversely to the dollar's strength.
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Josh highlights that it's not yet an "alt season" as dominance charts show Bitcoin still leading the market. He warns against allocating heavily into altcoins right now, noting that charts like Total 2 and Total 3 (measuring altcoin performance against Bitcoin) suggest they haven't bottomed yet.
He specifically points out that Ethereum, one of the major altcoins, is looking weak and could still make new lows.
Although some altcoins like Solana and FTM are holding up, the overall sentiment remains cautious. Josh mentions that most altcoins, particularly meme coins and speculative projects, are not showing significant bullish signals. He also advises against shorting assets like Ethereum or the dollar, as they've already experienced major declines, making further downside unlikely in the short term.
