Bitcoin‘s BTC/USD recent resurgence could potentially breathe new life into the broader cryptocurrency market, despite a significant number of altcoins failing since 2020.
What Happened: A report by Alphaquest and Storible has revealed that 72% of the crypto projects launched since 2020 have failed, Business Insider reported. This equates to 8,854 out of the 12,000 projects investigated.
“Interest in altcoins is intensifying as bitcoin and the largest cryptocurrencies increasingly retreat to all-time highs. Psychology is at work here, as a long period of all-time highs and a rather heavy asset makes you look for new ideas and increases your appetite for risk,” said Alexander Kuptsikevich, senior market analyst at FxPro.
2023 was the most challenging year, accounting for 59.35% of the failed projects. The year was marked by the collapse of FTX, a crypto exchange, which triggered intense regulatory scrutiny. Interestingly, 32% of the projects failed after FTX’s demise.
However, the tide might be turning in 2024. The launch of spot Bitcoin ETFs in the U.S. has reignited interest in the crypto space. Since their introduction in January, Bitcoin has surged over 47%, reaching its all-time high on Wednesday.
Analysts are optimistic about the future, with some predicting that Bitcoin could reach $100,000 by the end of the year. This, combined with other factors such as more ETF inflows, the token’s upcoming halving, and looser interest rates, could bring more attention to the industry as a whole.
“BTC increasing lifts all boats in a way,” Standard Chartered analyst Geoff Kendrick said.
“In other words, it brings new cash and new eyeballs to the industry which is super helpful for everything crypto-related.”
Why It Matters: The recent rally in the cryptocurrency market has been a topic of discussion in the industry. CEO of ARK Invest, Cathie Wood, predicts a Bitcoin price of $600,000 as her base case for 2030, almost 10 times the current price. In her bull case, she sees Bitcoin reaching $1.5 million by 2030.
Despite Bitcoin breaking its previous all-time high, analyst Michael van de Poppe thinks there’s a lot of steam left in King Crypto. This could be a sign that the current rally is just the beginning of a larger trend.
Additionally, hedge fund manager Bill Ackman suggested he was considering purchasing the apex crypto as an inflation hedge. This could indicate a growing acceptance of Bitcoin as a legitimate investment, which could further drive the market’s growth.
Read Next: Forget Dogecoin And Shiba Inu — This Meme Coin Has Surged Nearly 70% In Just 24 Hours
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