 |
| By Bruce Ng |
As my colleague Matia Matić explained yesterday, Bitcoin (BTC, “A”) is showing its bullishness. After falling to $56,500 last week, it has since rebounded back to $63,000.
While I can’t rule out additional volatility in the short term, I am very bullish on BTC in the long term.
And since Bitcoin leads the broad market, at least at first in a bull cycle, my long-term outlook for altcoins is also still bullish … even after last week’s correction caused some alts to drop by more than 50%.
In fact, I’m going to use this rebound to find a few potential winners. See, following the wipeout, some altcoins’ rebound has been stronger than others.
In a way, the dip was a godsend because it let the market reveal its cards. By showing us which alts rebounded the strongest, the market also showed us which coins and narratives are likeliest to outperform the entire market in the next big run up.
So, let’s look at the top 10 performers over the past seven days. Keep in mind these are the top performers sorted from a list of 12,000 altcoins, so this is a very select list:
Based on the table above, the top-performing coins hail from the following narratives:
- Artificial Intelligence — Render (RNDR, “B”), Worldcoin (WLD, Not Yet Rated), SingularityNET (AGIX, Not Yet Rated), Fetch.AI (FET, “B”), The Graph (GRT, Not Yet Rated), Arweave (AR, Not Yet Rated)
- Memecoins — dogwifhat (WIF, “E+”)
- Solana ecosystem projects — Solana (SOL, “B+”), Marinade Staked SOL (MSOL, Not Yet Rated), Jupiter (JUP, Not Yet Rated)
Now, FET and AGIX have temporary positive news events leading into this week. Specifically, they are part of a large crypto AI project merge, which my colleague Mark Gough wrote about previously.
So, if we omit them from the list above and pick the next two coins further down the list, we get:
Another memecoin, Pepe (PEPE, Not Yet Rated), and another AI coin, Akash Network (AKT, Not Yet Rated).
The market has basically given us a gift, beautifully wrapped. In the upcoming recovery, I foresee crypto AI, memecoins and Solana ecosystem coins will outperform the entire altcoin market.
Why Altcoins Are Diverging
Now, this latest twist — where the altcoins above are rebounding with greater strength than the broad altcoin market — is new.
In previous bull runs, all altcoins went up by roughly the same percentage. They all had similar gains profiles.
So, what’s different now?
The size of the market. There were fewer sectors back then … and, also, fewer coins. Now we have 12 or so different sectors and 12,000 coins altogether.
Since it’s harder to get a piece of every pie, investors have to be choosier about where they put their money. It makes sense that the top performers will start to pull away from the pack.
And this has been the case since the beginning of this bull cycle. Expert opinions differ, our consensus is that the bull cycle started back in October 2023. Since then, not all altcoin sectors have gone up the same amount. Some sectors have outperformed others by a large margin.
I pointed out which those were last week, but to recap the top-performing narratives over the past three months were:
- Memecoins
- AI
- Real World Assets
That’s now two sets of data — altcoin rebounders over the past week and sector performance over the past three months — that are saying the same thing. That is …
Memecoins and crypto AI projects will likely lead the market once altcoin season begins. And if any of those are tied to the Solana ecosystem, that likelihood increases even more.
Savvy investors should take note.
And if the idea of using data like this to help ID promising investment opportunities appeals to you, I urge you to watch our founder Dr. Martin Weiss’ latest briefing, How New AI Beats S&P by 51-to-1.
In it, Martin reveals a brand-new AI-powered stock trading system. Backed by 10 years of development, it can beat the stock market by 51-to-1, through market ups and downs.
He’ll show you how this technology — which he calls the crowning achievement of his 53-year career — works and he’ll reveal ten stocks this system has rated as a “buy.”
You can watch it all right here.
Best,
Dr. Bruce Ng
