In recent days, the crypto market has experienced a significant decline, with total liquidations reaching more than US$600 million. This decline has raised concerns among altcoin investors. However, some analysts believe that this situation could be an opportunity in the long term.
Pressure on Bitcoin and the Majority of the Crypto Market
Bitcoin price has plummeted below $95,000, even approaching $90,000. According to analyst Cody of Altcoin Buzz, the worst-case scenario could see Bitcoin price go to $85,000 or lower.
“If this level breaks, we could see a drop to $73,000,” he said.
Cody also added that the decline was due to better-than-expected US economic data, which pushed up bond yields.
However, another analyst, Bob Lucas, stated that this is part of Bitcoin's 60-day cycle.
“It’s only day eight of the cycle, and it’s too early to conclude there’s any long-term weakness,” Lucas explained.
He also added that corrections like this are important for long-term market stability.
Altcoins: Risk or Opportunity?
While Bitcoin is under pressure, some altcoins are showing signs of resilience. Ripple (XRP), for example, is still holding above a key level despite the market pressure, according to Altcoin Buzz analysts.
“If Bitcoin reverses direction, XRP could be one of the assets that rises faster than the rest of the market,” Cody explained.
Solana is also attracting attention, especially because of its potential to gain ETF approval this year. Andrew Kang, a prominent analyst, said that Solana is still undervalued, with higher trading volume than Ethereum and Base combined.
However, he also warned about the pressure that might arise from the US$3 billion token unlock in March 2025.
Stability Amidst Uncertainty
In a recent interview, Ripple President Monica Long stated that demand for stablecoins continues to increase.
“Stablecoins like RLUSD will play an important role as a primary asset in trading and payment solutions,” he said.
Long is also optimistic about Ripple's business growth, which has doubled in the past year.
On the other hand, projects like Render and Sonic are also showing promising developments. Render, for example, leverages GPU technology to meet the growing needs of artificial intelligence (AI).
“Render is the Nvidia of the crypto world,” says an analyst at Altcoin Buzz.
Although the crypto market is experiencing pressure in the short term, many analysts consider this to be a healthy consolidation phase.
“Don’t panic, this is a great time to accumulate altcoins that have strong fundamentals,” Cody said.
With the Bitcoin cycle expected to peak in April next year, investors are advised to stay alert and take advantage of the opportunities available in the market.
In closing, US Senator Cynthia Lumis provided an interesting perspective on Bitcoin adoption.
“What if the US starts buying Bitcoin, and that leads China and Russia to buy too? We could see a new ‘arms race,’ [but] not for arms, but for Bitcoin,” he said.
In volatile market conditions, a cautious approach and long-term strategy remain the keys to success in crypto investing. [TR]