Renowned investor and media personality Kevin O'Leary stated on Monday that altcoins are no longer rebounding after market corrections, as investor focus has shifted entirely to Bitcoin and Ethereum.
O’Leary Says Altcoins Have No Use Cases
In a post on X, O'Leary argued that investors now realize owning only these two cryptocurrencies is sufficient to capture 97.5% of the market's "alpha." He emphasized, "If you own those two, it doesn’t matter what happens anywhere else because everything else is moving with a much higher volume to the downside and not recovering anymore because they have no use case." O'Leary, also known as "Mr Wonderful," noted that unlike previous downturns, altcoins in the current market have failed to bounce back as expected.
No Altcoin Season Yet?
CoinMarketCap’s Altcoin Season Index currently shows a value of 23, indicating a "Bitcoin Season." An Altcoin Season typically occurs when 75% of the top 100 coins outperform Bitcoin over the last 90 days. Meanwhile, the total market share of altcoins has increased slightly from 28.2% to 29.5%, while Bitcoin’s dominance fell from 59.2% to 58.9%, and Ethereum’s share decreased from 12.6% to 11.5%.
O’Leary Advised Against Irrelevant Tokens
O'Leary has long advocated for focusing on these blue-chip assets. In September, he stated that owning Bitcoin and Ethereum can capture the majority of the market’s volatility and yield, advising followers to avoid chasing "irrelevant tokens." He also highlighted a shift in investment habits among Gen Z, noting that younger investors are now purchasing Bitcoin and Ethereum alongside traditional stocks—a trend he did not witness early in his investment career.
Price Action: At the time of writing, BTC was trading at $86,961.70, up 0.94% in the last 24 hours, while ETH traded down 0.50% at $2,804.71.
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