Bitcoin is on the rise, what is the prospect of altcoins going forward?
KONTAN.CO.ID - JAKARTA. The trend of rising cryptocurrency prices is predicted to continue this year, including the price of bitcoin which almost penetrated the level of US$ 50,000 per btc, its prediction in the long term the increase could continue to US$ 100,000 per btc. For those who feel the current level is too expensive, altcoins can start to be looked at as an option to diversify.
Quoting coinmarket on Sunday (14/2) at 17.57 WIB the price of bitcoin had touched its highest level at US$ 49,258 per btc or about Rp 689 million per btc (exchange rate of Rp 14,000 per US dollar).
Cryptowatch co-founder and Manager of Duit Pintar channel Christopher Tahir predicts that the level of US$ 50,000 per bitcoin (btc) will be quite easily penetrated in the near future. However, investors still need to pay attention to profit taking risks that can occur at any time.
"As of 2017, the higher the price, the higher the volatility. That's because, there will be the potential of big players who profit in the midst of a significant increase," Chris told Kontan, Sunday (14/2).
For the long term, Chris is optimistic that the price of bitcoin can reach the level of US$ 100,000 per btc. Seeing such fantastic potential, when investing in bitcoin he recommends doing dollar cost aveaging with proper risk care. "Remember, it's just money and not personal money," he stressed.
As for the recent upward trend in bitcoin, he said it was largely triggered by the rise of bitcoin buyers from institutions, not only Tesla, but also Grayscale, MicroStrategy and other companies. In addition, there are many rumors scattered related to the plans of other institutions that will enliven the cryptocurrency market.
Reflecting on these conditions, Chris still recommends investors who will enter the cryptocurrency market to maintain risk, because there is a possibility of purchases by institutions made long before a public announcement occurs. That way, he thinks it would be better to analyze the volume movement of Bitcoin first.
On the other hand, Chris revealed that the trend of bitcoin price movements will generally be followed by the movement of all alternative coins or altcoins. When the price of bitcoin is deemed too expensive by market participants, attention will turn to altcoins as well as options for diversification. Unfortunately, after the fall of hundreds maybe even thousands of altcoins in 2018, making altcoins products in 2021 is somewhat different.
"Only really good altcoins can follow BTC. So did the Doge follow? A little bit there is, but still be careful because the philosophy of the coin is only for testing," he explained.
Once soaring in January 2021, Doge coins were made with the aim of "messing around", meaning that the coins were created not for something serious, but simply as a project by using the source code of Bitcoin. The creator replaced the logo with a dog meme (Shiba Inu) and it was named Doge Coin. In addition, the price movement of doge coins is also not only updated as is bitcoin.
Chris also stressed, although the doge price of the coin is cheaper, but altcoins that one does not necessarily have a cheaper value. Moreover, in owning altcoins investors tend to focus on the value contained in such coins.
In addition, although doge coins become one of the cryptocurrencies that investors look at, but the liquidity of crypto assets also needs to be a concern. "Liquidity needs to be considered, not just chasing volatility, because it can be trapping if it is not followed correctly," he said.
Chris also added that the price movement of doge coins is still very much based on market sentiment, and has no clear fundamentals. Therefore, for investors who want to put their money into the Doge, make sure it is for the short term, not the long term.
"If I don't recommend buying it, especially if it's a project coin, it's better to be careful," he stressed.
Chris' preferred altcoins include Ether, Polkadots, Chainlink, and others. Chris himself tends to still focus on BTC and Ether only, because both cryptocurrencies are still the most powerful and most liquid today.