This crypto cycle achieved some notable feats during the first quarter of 2024, including the highest monthly and quarterly close in Bitcoin (BTC) history. However, BTC suffered a pullback that dragged Ethereum (ETH) and the rest of the crypto market lower at the start of the second quarter of the year.
Now that we are one month into the second quarter, the market is facing another correction. The most recent pullback became the deepest of the cycle, with Bitcoin plunging into the $57,000 support zone and Ethereum falling below $3,000. Despite the market’s stumble, analysts remain optimistic about what’s to come.
What makes this cycle different?
Traders and analysts urged investors not to panic about pullbacks just yet. A broader analysis shows that the market is above levels not seen since the last bull run. As many have discussed, there is a significant similarity between the performance of this cycle and previous ones.
However, analysts also pointed out the singularities of this bull run. Compared to the 2020 cycle, altcoins “didn’t even run that much in the last few months,” as renowned Altcoin analyst Sherpa noted. highlighted.
After Wednesday’s correction, trader and economist Alex Krüger gave his opinion on the performance of this cycle. Krüger agrees with some of Sherpa’s points, considering that the “many” options on the market have made the playing field more complicated.
Some thoughts on the current crypto cycle
#1 The crypto cycle was almost entirely driven by the bitcoin ETF.
#2 ETH was a huge disappointment but performed well overall for stakers and airdrop farmers.
#3 Solana has established itself as the preferred network for…
-Alex Krüger (@krugermacro) May 1, 2024
Likewise, he also noted the desire to “focus on making a quick buck” and invest in “short-term hype rather than longevity.”
The trader highlighted that Bitcoin exchange-traded funds (ETFs) “almost entirely” drove this cycle. In addition to BTC, memecoins have been the dominant narrative of the bull run, ranking among the biggest gainers of the first quarter of 2024.
Furthermore, Krüger stated that most market participants who missed the Bitcoin ETF run “went all in on altcoins to compensate.” As a result:
They deployed late and poorly, surging to higher levels, and are now red hot and at a loss as many altcoins have given up all of their 2024 gains in the last month.
“Disappointing” Ethereum Execution
One of the crucial points of Krüger’s analysis is Ethereum’s overall poor performance. For the crypto veteran, the second-largest cryptocurrency by market capitalization “has been a huge disappointment” even though it has performed well for investors and farmers.
Despite seeing massive gains along with Bitcoin’s run, Ethereum has not been able to challenge its all-time high price (ATH) set more than two years ago. Additionally, Solana surpassed Ethereum after “establishing itself as the network of choice for retail traders.”
It is important to note that the turmoil surrounding Ether and the Ethereum Network has apparently affected the token’s recent performance. The “king of altcoins” is currently facing serious regulatory scrutiny.
The suspected rejection of an Ether spot ETF by the US Securities and Exchange Commission (SEC), coupled with news of the agency’s investigation into the asset’s classification as an “unregistered security”, appears to have created uncertainty around ETH.
The current Ethereum scenario has rekindled considering conversations against its founders and the asset, possibly fueling the dubious sentiment surrounding a sector of the crypto community.
Despite the challenging scenario, many analysts consider that investors should not be pessimistic about Ethereum. After falling 4.5% and 14.39% on weekly and monthly intervals, ETH has recovered 3.3% of its price in the last 24 hours.
Ultimately, Krüger’s consideration concludes that “the cycle is not over.” However, he points that investors “need to get out of the panic zone and reignite big companies” before finding a new narrative for this run.
Ether is trading at $2,999.80 in the three-day chart. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
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