After 2022, which was like a nightmare, we made a promising start to 2023. Hive price rose 50% in January, and other altcoins performed similarly. However, the upward trend did not continue in the following months. Today, the Hive price has fallen below the price it reached at the end of January.
Some analysts predicted that 2023 would not be good for altcoins. It was expected that only Bitcoin would increase this year. It was said that altcoin holders should wait until 2024 for the increase because this is how the price movements took place in the year following the previous bear season.
I believe in the validity of the saying that you can't bathe in the same water twice. Therefore, price movements will be different from 2019. Price movements to date have partially confirmed the pessimistic forecasts for altcoins. Unless we ignore the strong performance of Ethereum. Bitcoin is up 67% yearly, while Ethereum is up 54%. Therefore, Ethereum says, with its robust appearance, "I am no longer an altcoin."
On the other hand, 14 altcoins in the top hundred performed better than Bitcoin. Therefore, investors who make good choices can earn higher returns than Bitcoin provides. This year, we primarily observed rapid rises in artificial intelligence-related coins. Recently, we have been facing a wave of hype created by meme coins. Besides, some coins rose individually.
Hive is up 43% since the start of the year. We see that Hive performs better than most altcoins and is weaker compared to Bitcoin and Ethereum. Building on it undoubtedly support the Hive price, but high price increases are only in question for the coins about which hype is created.
It is impossible to argue that funds are flowing into the crypto market. Central banks reduce the amount of liquidity in the market to fight inflation. That's why only a small number of cryptocurrencies can rise.
When Will Altcoins Rally?
For a rally in the altcoin market, small investors need to despair of the market. Cryptocurrency prices have been declining for a year and a half, but there are those who, like you and me, do not give up on this market. Those with in-depth knowledge of crypto will not sell their coins. In addition, those who have yet to gain an in-depth understanding of crypto but know the functioning of financial markets well may be investing in altcoins. On the other hand, a large group of investors selling their last coins will make the prices more attractive.
On the other hand, drastic moves must occur in both directions so that leveraged traders do not get a share of the movement created by whales. All these things take time to happen.
On the other hand, although the Fed has come to the end of the road in interest rate hikes, liquidity continues to decrease. The Fed's interest rate hikes are ending in June, and I predict that confidence in the market will increase towards the end of the summer.
TL;DR
I think groups of altcoins will rally in different periods. I expect the rise for the Hive to happen in August, but I'm not sure. Because in the last 18 months, my forecasts have remained optimistic compared to the market realities.
Patience is the key to success.
Thank you for reading.