The Lucky Block token LBLOCK continues to set new all-time highs, currently consolidating at just under 1 cent. At $0.01 its fully diluted marketcap will be approximately $1 billion.
While last week the upcoming altcoin corrected at the same time as a drop in the Bitcoin price, at the time of writing it is up 14% in the past 24 hours despite a 7% Bitcoin crash.
Altcoins that are green on the day during market crashes can be seen as a ‘safe haven’ for investors who then rotate part of their portfolios into the stronger asset. Some Pancakeswap DEX traders may be swapping Binance Coin (BNB), also red on the day, for LBLOCK.
Cryptocurrency markets are highly volatile and your investments are at risk.
Are altcoins tied to Bitcoin?
Usually most cryptos tend to follow BTC price action, crashing when BTC dumps – often by a higher percentage, as investor confidence in more volatile assets like altcoins drops when BTC is not stable or bullish.
Likewise they usually go up when Bitcoin is either stable – moving sideways – or in a slow and steady uptrend, as money trickles down to more ‘risk on’ assets like altcoins. As long as BTC doesn’t pump too fast, in which case ALT / BTC pairs can go down as short-term traders rotate back into BTC while it is pumping and leading the market.
When one altcoin such as LBLOCK today either doesn’t fall when Bitcoin falls, or actually goes up, it’s said to have ‘decoupled’ from Bitcoin.
In this case it may be due to the Lucky Block project being under a month old, still in price discovery and early in its bull cycle, when hype and retail investor interest is highest. The Lucky Block crypto Reddit has been consistently increasing in subscribers.
Another reason is the passive income it can provide to holders, in the form of lottery jackpot redistributions. Coins that implement some form of incentive for holding – another form being staking rewards, providing an annual percentage yield (APY) – tend to go down less when Bitcoin dumps. Ethereum has been in a two-year uptrend against BTC, helped in part by large amounts of ETH being locked up in staking before the launch of ETH 2.0.
When will altcoins decouple from Bitcoin?
In terms of when all altcoins will decouple from Bitcoin completely, that may never happen. A CoinDesk article noted that during the selloff in equities in early 2022, BTC also crashed to $33,000 and the total crypto market cap to $1.6 trillion. BTC has now stabilized, although only once the S&P 500 did, around its 200 day EMA.
With crypto being correlated to the stock market and centralized liquidity, the narrative that altcoins can decouple from Bitcoin and outperform it regardless of the macro environment looks less likely.
“It appears as though the whole market is simply correlated to equities now. It will be interesting to see how that evolves with the Federal Reserve looking increasingly likely to raise rates”. – Data analytics platform Laevitas.
“Currently, the S&P 500 seems to dictate the direction of Bitcoin and the overall crypto market. Bitcoin’s 90-day correlation to the S&P 500 is currently at its highest since October 2020.” – Arcane Research.
Coins to buy for the next crypto bull run
Altcoins not decoupling from Bitcoin, and Bitcoin not from stocks, may not be a bad thing in the long run. Crypto traders have been pointing out the SPX fractal below, comparing the Bitcoin chart to a historical consolidation in the S&P 500 before it went on a bull run.
i c many ppl sharing this $SPX fractal, agreed!! but at the same tym u cannot call 60k and deny the fact we may actually follow the fractal which will put us under 30k (20-25k)
Sooner or later i do think we hit that zone, Blue or purple m not sure bt leaning towards purple!#BTC pic.twitter.com/5zZ32ntpVo
— VΣGΣƬΛ (@VegetaCrypto1) February 18, 2022
If that plays out, Bitcoin could be headed to $150,000, although may first have a further correction to sweep the lows at $30k and potentially take the liquidity at $20 – $25k.
The next crypto bull run could then resume in the fourth quarter of 2022. The last bull run began in Q4 2021, breaking the previous $20,000 all-time high in December then rallying to $65,000.
Based on that prediction – which is still speculation at this point, it could take longer e.g. during the run-up to the 2024 Bitcoin halving – investors may now be looking into the best coins to buy for the next crypto bull run.
We’d recommend always holding some Bitcoin in your portfolio even if you predict an ‘altcoin season’ in which alts outperform BTC. Trading altcoins is more difficult and some altcoins can never recover from negative news attention or fundamental updates that affect their roadmap and use case.
Bitcoin has historically always recovered from crashes and set new ATHs regardless of macro conditions such as countries announcing they will ‘ban Bitcoin’ throughout its 12 year history. It cannot be abandoned in the way developers often abandon altcoin projects.
As mentioned in times when Bitcoin dominance is high and it pumps hard, altcoin pairs often dump as money flows back into the stronger asset. It’s hard to time the market and predict when that might happen.
Your capital is at risk.
ETH / BTC bottomed in mid 2019, then went into an accumulation cycle for months before beginning a two-year steady uptrend vs Bitcoin. Like BTC it has always recovered from bear markets such as in 2018 and set new ATHs.
It can also be staked on various crypto platforms like eToro so you can earn yield from Ethereum while waiting for the next crypto bull run, and have more ETH when the bull run starts.
Some of the best cryptocurrency traders to follow predict Ethereum will overtake Bitcoin in marketcap at some future point, a bullish narrative called ‘the flippening‘.
SOL had a bull run in 2021 from around $3 to over $250. Seen by some as an ‘Ethereum killer’ or at least an asset that is able to do what ETH can more efficiently with more transactions per second, it could be a good hedge against Ethereum.
It may also rise alongside Ethereum. SOL is currently potentially in a ‘buy the dip’ spot, trading back under $100. Solana is seen by many as a good investment due to its association with billionaire CEO of FTX exchange Sam Bankman-Fried, who famously promoted it on Twitter at $3. Solana can be staked at Huobi.
A new emerging asset class to come out of crypto is non-fungible tokens which were pumping (increasing in floor price) in early 2022 while Bitcoin was falling, appearing to be decoupled from it. Since they aren’t cryptocurrencies, holding some NFTs could be a good hedge against the crypto markets.
In terms of coins related to NFTs and potentially returning a high ROI as the NFT market continues to gain popularity, Ethereum, Solana and Decentraland (its MANA token) can be used to buy NFTs. Decentraland NFTs are one of the most popular NFT projects. Interest can be earned on MANA holdings at Crypto.com.
Since LBLOCK has already shown a strong bullish uptrend and decoupled from Bitcoin early on, it could be a good investment for the remainder of 2022 and the next crypto bull run. It’s currently up less than 100x from its presale, and still has a long roadmap including its first crypto lottery draw, its app release, and new upcoming crypto exchange listings.
Some more reasons to invest in Lucky Block are covered in this article. It has a strong use case, built-in incentives for holding and could capture a share of the worldwide $330 billion valuation lottery market. LBLOCK is currently ranked the #2858 altcoin by market capitalization on Coinmarketcap.com.
Cryptocurrency markets are highly volatile and your investments are at risk.
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