Andrew Kang, founder of Mechanism Capital, predicted that over 98% of altcoins have already peaked for the current cycle.
He noted that only a select few coins might see new highs in late 2024 to early 2025, with meme coins likely to make up most of the coins with the potential to reach new highs.
Altcoin and Meme Coins Prediction
Kang’s recent remarks build on a statement he made about a week ago, in which he observed that Bitcoin had led the crypto market to an inflection point. According to him, this comes after prolonged periods of trading behaviors that become ingrained and continuously rewarded.
The most common mistake you see in crypto markets is buying too early when the trend has inflected from up to down
Corrections from big market structure breaks are always deeper and longer than most expect
You do not buy when a few people are bearish 10% off BTC highs. Some… https://t.co/8vLwKXBa4G
— Andrew Kang (@Rewkang) July 7, 2024
In his July 7 X post, Kang highlighted a common mistake in the crypto markets: buying too early when the trend shifts from upward to downward. He emphasized that corrections following significant market structure breaks tend to be deeper and longer than anticipated.
“You do not buy when a few people are bearish 10% off BTC highs,” Kang stated. “Some people need to sell for the price to go down after all. You buy for the next cycle when everyone is liquidated, people leave the space, and the majority question whether crypto is dead forever.”
One X user responded to Kang’s observations, interpreting his comments as suggesting that the current cycle is over and there is no point in buying any time soon. Kang responded, “I believe 98%+ of altcoins topped for the cycle except for maybe a handful of coins that may make some new highs in Q4 2024/Q1 2025.”
Responding to a question about how meme coins fit into his outlook, the analyst said, “Memes probably constitute a majority of the coins that have a chance of making new highs. Hundreds of thousands of meme coins exist, so you need to be quite selective.”
Future Prospects
The crypto industry is closely watching the U.S. Securities and Exchange Commission (SEC) for a decision on the launch of spot Ethereum ETF trading. Analysts and market observers are optimistic that the SEC’s decision, expected within the next two weeks, could trigger a new rally for ETH.
Kang also states that Bitcoin is transitioning into a “supercyclish asset,” exhibiting characteristics from previous cycles while increasingly behaving like a mature macro asset.