Famous analyst evaluated: Is it a buy signal for altcoins?

Altcoins with market capitalizations below $10 billion may be poised to present “some opportunities” for investors who have been bearish since Bitcoin reached a new high in early 2024.

“Cryptocurrencies at lesser levels in terms of market cap have taken a lot of damage since March,” RealVision chief crypto analyst Jamie Coutts wrote in a June 13 X post.

Bitcoin reached an all-time high of $73,679 on March 13, but dropped nearly 6 percent to $67,126 last week.

Analyst warns about cryptocurrencies with low market value

“If this decline is a cycle correction, which I believe is to be expected, expect opportunities in mid- and small-cap altcoins,” Coutts said.

Bitformance’s crypto information shows that in the last three months, altcoins overall are down over 30 percent. The decline indicates that smaller cryptocurrencies are performing weaker against larger cryptocurrencies in terms of market capitalization.

Metaverse-related tokens recorded the lowest return within the index in the last three months, with a negative return of 44.13 percent. In the sub-$1 billion market cap category, metaverse tokens SAND and MANA fell over 15 percent last week, according to CoinGecko. This development comes as institutional interest beyond Bitcoin and Ether continues to grow.

On June 6, Franklin Templeton said he was exploring a new crypto fund for institutional investors to invest in altcoins. The asset manager did not mention which altcoins would make up the fund, but it looks like the focus will be on projects in the Solana ecosystem.