Crypto's rally may shift to altcoins, FalconX’s Joshua Lim says
Bitcoin’s rise could slow from here, with traders rotating into altcoins that have missed much of the rally, said FalconX head of derivatives Joshua Lim.
The crypto asset is now trading near $77,244 after leading the move higher from the $60,000 level that held for much of the summer. Lim said that strength could set up a “catch-up” trade in other cryptocurrencies.
Bitcoin Cash BCH $317,63 is one example. Lim said traders are buying BCH for broader exposure to a rising crypto market. Strong price gains can also make weaker altcoin investment cases easier for portfolio managers and investment committees to defend.
That rotation is already showing up in Friday’s trading. Bitcoin Cash BCH $317,63 led the market with a 31% gain over 24 hours, while Ethena (ENA) rose 27%. Pudgy Penguin’s native token, PENGU, and Pepe Coin PEPE $0.0₅4291 gained roughly 20% while.
Broader measures have yet to show a full altcoin season. Bitcoin dominance stands at 59.8%, down just 0.1 percentage point, while CoinMarketCap’s Altcoin Season Index is 33 out of 100, down from 51 last week.
Behind the rally, Lim sees a larger change taking shape. Bitcoin’s role as a hedge against currency debasement has gained wider attention, while Treasury support for long-term bonds amounts to a form of easing, he said. Crypto has tended to benefit from easier financial conditions.
Retail traders, Korean investors and traditional finance firms that had turned toward AI, stocks and commodities are also returning, Lim said.
But momentum brings risk. Lim warned that during periods of market euphoria, prices can outrun fundamentals, complicating decisions about price targets and when to cut exposure.
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