The theory of crypto market cycles is one thatās been around for many years now. In essence, many traders and analysts are of the opinion that thereās a considerable bull market once every four years, usually predicated by the Bitcoin halving.
So far, that has been the case.
Within these major cycles, there are usually countless other mini-cycles where, during some instances, certain altcoins perform better than BTC and can deliver larger gains. But the risk of that is that if the user fails to exit their altcoin position in time, they might be left holding a bag that might never recover.
Is that the case for Cardano (ADA) holders?
The popular analyst Caleb Franzen recently took it to X to outline a painful truth about ADA.
Source: Caleb Frazen, X
Franzen continues his observation, pointing out that ADA is currently trading at its lowest point since December 2020.
In addition, ADAās performance is shaky for many whoāve entered the market in the past few years:
Source: Caleb Franzen, X
The analyst also made an important conclusion:
Of course, other altcoins also display similar patterns when compared against Bitcoin.
This is XRPās chart against BTC in the last year:
Source: CoinMarketCap
This is ETHās:
Source: CoinMarketCap
And this is TRXās:
Source: CoinMarketCap
Of course, there are some altcoins that have outperformed BTC. For example, SOL and BNB are doing better in 2024. But the situation changes if we zoom out the chart to a certain degree.
The post The Opportunity Cost of Holding Cardano Instead of BTC: How Much Are ADA Holders Behind? appeared first on CryptoPotato.
So far, that has been the case.
Within these major cycles, there are usually countless other mini-cycles where, during some instances, certain altcoins perform better than BTC and can deliver larger gains. But the risk of that is that if the user fails to exit their altcoin position in time, they might be left holding a bag that might never recover.
Is that the case for Cardano (ADA) holders?
The Opportunity Cost of Holding Cardano
The popular analyst Caleb Franzen recently took it to X to outline a painful truth about ADA.
Over the past 34 months, Cardano has lost 90% of its value relative to Bitcoin.
Donāt ignore opportunity costā¦ itās costing ADA holders a lot of money.
Source: Caleb Frazen, X
Franzen continues his observation, pointing out that ADA is currently trading at its lowest point since December 2020.
In addition, ADAās performance is shaky for many whoāve entered the market in the past few years:
Source: Caleb Franzen, X
The analyst also made an important conclusion:
This chart is generally embematic of why I only trade alts and I donāt invest in themā¦ they canāt keep up with BTC over the long run.
Itās Not Just Cardano (ADA)
Of course, other altcoins also display similar patterns when compared against Bitcoin.
This is XRPās chart against BTC in the last year:
Source: CoinMarketCap
This is ETHās:
Source: CoinMarketCap
And this is TRXās:
Source: CoinMarketCap
Of course, there are some altcoins that have outperformed BTC. For example, SOL and BNB are doing better in 2024. But the situation changes if we zoom out the chart to a certain degree.
The post The Opportunity Cost of Holding Cardano Instead of BTC: How Much Are ADA Holders Behind? appeared first on CryptoPotato.