Even a Billionaire Crypto Investor Doesn’t Understand The Recent Altcoin Rally

Tony "The Bull" Severino

Last Updated: January 15, 2020 5:00 pm

2 mins read

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This week, the crypto market erupted with Bitcoin surging to test downtrend resistance, while altcoin assets everywhere exploded through their downtrend resistance and went on massive rallies. Some even went on a 400% rally, shocking crypto investors who have watched the asset class in a perpetual state of decline over the last two years.

But not everyone is convinced that the rally has legs, or even understand why the rally is occurring. Even a well-known billionaire crypto investor with his own crypto-focused fund doesn’t understand the current rally or what has changed across the crypto market that would cause such a surge.

Novogratz on Altcoin Rally: New Year, New Money, or Nonsense?

After spending nearly six full months suffering deeper losses, the altcoin market may finally be ready once again for liftoff, as many of the crypto market’s top assets, including Bitcoin, have gone on massive rallies.

While the number one crypto asset by market cap, Bitcoin, is also surging alongside the other cryptocurrencies like Etheruem and Litecoin, these altcoins are greatly outperforming it on their BTC ratios. Bitcoin forks Bitcoin SV and Bitcoin Cash – even more obscure forks like Bitcoin Gold and Diamond – all exploded in value, with BSV leading overall gains with nearly a 400% rally this week on the heels of news that frontman Craig Wright uncovered new documents in a pending court case against the estate of David Kleiman.

And while the court case provided an explanation for why BSV skyrocketed, the rest of the crypto market is left scratching their heads as to why other altcoins took off this week. Even Mike Novogratz, CEO of crypto investment firm Galaxy Investment Partners and Galaxy Digital Assets, doesn’t understand the rationale behind the altcoin rally.

I’m not sure I understand the altcoin rally. Happy for those making money on it. But not sure what changed. Maybe new year, new money, new enthusiasm. Dinner in NYC for best explanation.

— Mike Novogratz (@novogratz) January 15, 2020

Novogratz knows markets. After spending time in his early career as a partner at Goldman Sachs, Novogratz moved on to Fortress Investments where he worked as a hedge fund manager for high wealth clients. From there, Novogratz entered the crypto market and is now one of the most respected figures in the space.

Crypto Community Speculates On Why Alt Season Has Returned

There are a number of theories floating around the crypto community, with some pointing to whales playing games on derivatives exchange OKEx with illiquid assets and causing FOMO buying from retail crypto traders. Other theories simply point to the market cycle restarting once again, altcoins reaching such oversold conditions, and more.

Market psychology could also suggest that the market – including billionaire CEO former ex-hedge fund managers – are still in the disbelief phase and can’t see past the recent bear market to realize that the selloff has ended, and a new uptrend is about to begin.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.