#HotJulyPPI The Dilemma of Bag Holders
Mao talked about the “Dilemma of Bag Holders” earlier this week, predicting that Ethereum investors would soon start selling their holdings and shift back to Bitcoin.
He explained that reaching historical peaks for ETH would be difficult, as “the closer you get to that psychological level, the more investors want to sell.” He noted that this logic does not apply to Bitcoin.
Over the past thirty days, Ethereum has outperformed Bitcoin by a large margin, surging 58% compared to a mere 3.5% increase for Bitcoin during the same period.
Altcoins Are Rising Too Much
The CEO of Jan3 added that Bitcoin will register new peaks, “but I think we will see a pullback because altcoins are rising excessively right now.”
He pointed out that after the “altcoin frenzy” subsides, Bitcoin will surge again, stating: “This is always the usual pattern.”
Bitcoin's market dominance has decreased by about 10% since late June, dropping this week below 60% for the first time since January, according to TradingView. This sharp decline in dominance is historically a sign of an impending altcoin season.