Nicholas Merten Predicts Altcoin Dominance To Spike During This Cycle

According to Nicholas Merten, a prominent crypto analyst and trader, altcoins could see more money coming to their way and growing their portion of the total crypto market.

Merten told Scott Melker in a recent interview he is closely following altcoin dominance, which compares the market cap of the entire altcoin market to that of Bitcoin. According to Merten altcoin dominance is a good metric to keep an eye on for the amount of risk that crypto investors are willing to take in the market.

Altcoin dominance is at 56.5% at the time of writing. The analyst predicts a significant growth for the metric during this cycle.

“I think we’re going all the way to 75% in this cycle. Last time around… we topped out at a very similar level in around April-May in 2018… A lot of people think we’re going to top at the same range here… But there are always new projects coming in… There’s an infinite amount of altcoins that can exist…

What we can see now, is that there’s an infinite creation of altcoins and an inevitable reality. And I think we have to face that is just based and rooted in logic is that altcoins are going to capture more of that dominance.”

Merten expects an extended market cycle that will last all the way to late 2022. He predicts a scenario where the crypto bull run finishes off with altcoin dominance making its way to new highs.

Regarding Bitcoin, Merten is more conservative with his predictions for the bull run than many fellow analysts. The size of Bitcoin requires a lot more monetary energy to move the price, he has pointed out.

“The problem is that as you grow bigger in price, you need excessively more liquidity. You’re going to need, really those institutional buyers, the real billion-dollar hedge fund managers starting to make big bets on crypto, and we’ve seen the early signs of that… But I think we need that kick-off rally first, after a solid period of consolidation before you start to see them diving onboard.”