Notable Crypto CEO States Why XRP, SHIB, Solana, Other Altcoins Will Crash

The cryptocurrency market has witnessed a significant rise in Bitcoin’s (BTC) value since the latter part of 2023. This bullish trend has extended into 2024, with Bitcoin reaching new all-time highs. Although some altcoins have mirrored this spectacular performance, others have been left behind, promoting questions about Bitcoin’s impact on altcoins.

Shiba Inu (SHIB) is an amazing example of the positive effects of Bitcoin, as SHIB rose over 200% within a few days. However, Samson Mow (@Excellion), CEO of Bitcoin technology firm JAN3, believes this trend might not be sustainable in the long run. He argues that altcoins, despite their current gains, lack the level of investment inflows that Bitcoin enjoys.

Bitcoin’s Impact on Altcoins

Mow emphasizes the consistent inflow of capital into Bitcoin investment products, particularly exchange-traded funds (ETFs) focused on spot Bitcoin holdings. These investment vehicles have witnessed hundreds of millions, and even billions, of dollars in flows in since their launch. In Mow’s words, “Obviously they lack the $500M to $1B daily inflows we have.”

Bitcoin ETF products collectively raked in a record $1.04 billion on a single Tuesday, highlighting the immense investor interest in this digital asset. When compared to altcoins, the disparity is stark. XRP investment products only saw a meager $1.5 million inflows during the same period, while Ethereum (ETH) managed a slightly better, but still significantly lower, $2.1 million.

This persistent inflow into Bitcoin products is a key driver of its sustained growth. Other altcoins with comparatively lower investment inflows might fail to maintain their current valuations. This reasoning led Mow to predict a potential “crash” for altcoins in the coming weeks.

In another post, Mow points to the seemingly inflated market capitalization of certain altcoins. He cites Solana (SOL) as an example, with its market cap reaching $74.9 billion, exceeding some of the biggest companies in the world.

In Mow’s view, this disparity raises questions about the true value proposition of some altcoins, suggesting a potential correction might be on the horizon.

Will Bitcoin Cause an Altcoin Decline?

It’s important to note that Mow’s perspective contrasts with the views of many market analysts. These analysts point out that a significant number of altcoins haven’t yet recovered from their 2021 peaks, leaving room for further growth despite the recent gains.

Additionally, proponents of various altcoins are actively pushing for the introduction of spot ETFs for their preferred assets. The XRP community, for example, has been advocating for a spot XRP ETF, while Shiba Inu enthusiasts recently launched a campaign to create a dedicated SHIB ETF.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.