The fall of altcoins is almost complete. Analysts of Fundstrat Global Advisors LLC adhere to this opinion. This is reported by Bloomberg.
According to their estimates, altcoins have fallen by 75% in the last 64 days. This was preceded by an unprecedented take-off of the market, which allowed many of them to update historical highs and lasted 62 days.
Analysts analyzed the trajectories of the last three drops of altcoins and came to the conclusion that each time the fall lasted about the same time as the preceding growth. Thus, according to Fundstrat, the probability that the recession remains in the past is great.
At the same time, Tom Lee and his colleagues believe that it is too early to prepare for a new wave of growth.
During previous cycles, the recession was followed by a consolidation period, which lasted from 70 to 231 days, analysts write in a note. In this regard, they advise their customers to keep assets in the near future in larger crypto-currencies, for example, in bitcoin.
We believe the current purgatory period will last for 150-175 days, implying a bull market for alt-coins really starts mid-August to mid-September. The reason for this longer duration is the current dark clouds overhanging crypto are really alt-coin specific.
Fundstrat Global Advisors LLC
Earlier, the US Securities and Exchange Commission initiated an investigation into a number of cryptocurrency start-ups that distributed their tokens through the ICO, suspecting that they could sell securities in this way. These tokens, among other things, form a segment of altcoins.