Bitcoin (BTC) May Now Represent a Riskier Investment Than Various Altcoins

A famous cryptocurrency analyst, in a recent review of current market conditions, has put forth the argument that Bitcoin (BTC) may now represent a riskier investment

A famous cryptocurrency analyst has claimed that investing in altcoins might be less risky than allocating capital to Bitcoin (BTC).

In his latest podcast, the analyst highlighted critical factors showing why investing in certain altcoins may currently offer a more favorable risk profile than capitalizing on Bitcoin.

The analyst’s initial pointer to Bitcoin’s comparatively higher risk centers around the pioneer cryptocurrency’s landmark achievement in the current bull cycle. According to him, breaking the previous all-time high and installing a new one puts Bitcoin at a higher risk.

At its face value, most users would expect Bitcoin to retrace before the altcoins, most of which are trading below the all-time highs from the last cycle.

The analyst stated:

"The implication of this new all-time high is that we're now seeing a build-up in risk factor for Bitcoin."

The analyst cited Bitcoin’s risk model, which had a score of 53 at the time of broadcasting. Drawing on historical data, he revealed a variation in the current Bitcoin behavior compared to previous cycles, highlighting how the cryptocurrency’s risk factor increased despite the potential of external factors affecting market sentiments, and having a significant effect on the price trend.

Notably, Bitcoin’s risk factor has crossed the midway level on the standard metric.

In contrast to Bitcoin, other top cryptocurrencies exhibit lesser risks, suggesting they could have more upside potential. For instance, Cardano’s risk score was 41 during the analysis, supporting its bullish outlook and upside sentiment. ADA’s price trend and risk factor are consistent with the altcoin’s behavior during the last cycle, reinforcing the analyst’s projection of higher targets for the cryptocurrency.

Using more examples, the analyst showed that Chainlink had a risk factor of 39; 2 points lower than Cardano, while Ethereum, the most capitalized altcoin, has a 37-point risk factor.

By combining these data metrics, the cryptocurrency analyst demonstrated that the current risk factors and the dynamics of Bitcoin/Altcoins dominance appear to align in support of an upcoming altcoin season. This is a market situation that many crypto users anticipate will occur in the coming months.