HashKey Capital remains optimistic about altcoins, taking cues from the ongoing Bitcoin boom. Their bullish stance is based on a mix of market analysis, strategic investments, and economic factors that suggest strong potential for low-cap tokens.

At the same time, Bitcoin (BTC) continues to perform well, with the $70,000 milestone within reach. Should positive sentiment lead to capital flowing into altcoins, Ethereum and Solana are expected to be the primary beneficiaries.

HashKey Capital Eyes Market Potential for Altcoins

The investment firm has articulated its bullish outlook in a recent Medium post. It outlined the strategic rationale behind its focus on altcoins amid changing market outlook and investor sentiments. Specifically, HashKey Capital has identified a critical shift in investor behavior, citing an increasing demand for diversified portfolios that extend beyond Bitcoin and Ethereum.

Growing Institutional Interest

The post emphasizes that the increasing institutional interest in cryptocurrencies serves as a strong catalyst for the growth of altcoins. It highlights the growing narrative around cryptocurrencies as major financial players and asset managers become more involved in the digital asset space.  

Further, institutions are looking beyond Bitcoin and Ethereum, considering altcoins as viable investment vehicles. Among them is Bitwise, which recently revised its XRP ETF (exchange-traded fund) filing. Others, like Grayscale, are pivoting their trust funds to altcoins such as Aave, Sui, and XRP.

Read more: 10 Best Altcoin Exchanges In 2024

According to Jupiter Zheng, HashKey Capital’s partner of liquids funds and research, professional investors are eager to explore altcoin opportunities. Due to their lower market capitalization and growth potential​, these tokens have historically provided substantial returns.

Changing Market Conditions

HashKey Capital’s optimism is also grounded in favorable market conditions. Recent trends indicate that cryptocurrency markets are stabilizing, aided by improved liquidity and shifting macroeconomic conditions. The firm points to signs of a market bottoming out, which, coupled with the potential easing of US interest rates, is seen as a favorable environment for altcoin investments.

“The peaking of US interest rates combined with improved liquidity in the crypto market creates an ideal environment for investors to explore altcoins,”​ Zheng noted

The increase in applications for spot crypto ETFs (exchange-traded funds) also reflects a growing acceptance and normalization of digital assets. For instance, Nashville-based investment firm Canary Capital filed for a Litecoin ETF, which further enhances the investment avenue for altcoins.

Regional Regulatory Boost

Another key component of HashKey Capital’s bullish outlook on altcoins is the supportive regulatory environment. Hong Kong is a key focus for the asset manager, given that it is based there. The region has made significant strides in establishing a strong framework for digital assets.

This has attracted institutional interest and provided a favorable atmosphere for crypto investments, with the likes of Animoca Brands exploring a possible IPO (initial public offering) in Hong Kong or the Middle East. The regulatory clarity is expected to facilitate greater adoption of altcoins and pave the way for new projects to emerge​.

As HashKey navigates this regulatory playing field, its focus on altcoins aligns with the broader trend of institutional players entering the market. This influx of capital and expertise is anticipated to drive innovation and create new investment opportunities within the altcoin space​.

Diversification Strategy

Nevertheless, HashKey Capital’s strategy goes beyond capitalizing on market trends. It is also about prudent risk management through diversification. The firm plans to allocate less than 50% of its funds to Bitcoin and Ethereum, allowing for greater exposure to smaller-cap cryptocurrencies. This strategic allocation aims to optimize risk-return profiles by tapping into the potential of various altcoin projects.

The selection criteria prioritize projects that exhibit strong fundamentals and novel approaches. Taken together, the asset manager’s altcoin pivot highlights an understanding of market inefficiencies. Smaller market cap-sized cryptocurrencies often experience higher volatility, but they also provide opportunities for outsized returns. By strategically investing in a range of altcoins, the crypto investment firm seeks to balance risk while pursuing substantial upside potential.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season.

HashKey Capital’s expression of bullishness on altcoins is timely, coming along with analysts’ expectation that the colloquial “alt season” is near sight. As BeInCrypto reported, the Altcoin Season Index has dropped to its lowest level since early September, signaling a potential shift. Nevertheless, some are also skeptical about an altcoin season happening, given Bitcoin’s prevailing dominance.

In the past few weeks, Layer 1 (L1) blockchain Aptos (APT) has witnessed a significant surge in network activity. User activity on the Proof-of-Stake (PoS) network has climbed to multi-month highs, driving the value of its native token, APT, to new heights.

Readings from its technical setup suggest that APT is poised to extend its current gains. If demand is sustained, the altcoin may rally toward $19.37. This analysis delves into why that is likely in the mid-term. 

Crypto Users Flock to Aptos 

On-chain data has revealed a notable uptick in user activity on Aptos over the past month. Per Artemis, the daily count of unique addresses that completed at least one transaction of the blockchain in the past 30 days has skyrocketed by 115%. During the period in review, Aptos’ daily active addresses have totaled 743,466.

The recent surge in user activity on the Aptos network has led to a significant increase in its daily transactions. Over the past month, the network has processed more than 5 million transactions, marking an impressive 373% growth in transaction volume. 

Read more: 5 Best Aptos (APT) Wallets in 2024

This growth is evident in Aptos’s thriving decentralized finance (DeFi) sector. Its DeFi total value locked (TVL) has spiked 67% over the past 30 days, reaching an all-time high of $909 million. 

According to DefiLlama, Aptos currently ranks as the 11th largest blockchain by TVL, trailing just behind Sui, which has a TVL of $1.01 billion.

APT Price Prediction: Coin Targets Yearly High

The surge in network activity has translated into impressive price gains for APT. As of this writing, the altcoin trades at $10.88, just above the support of $10.07. It has noted an 11% price surge over the past 24 hours and currently ranks as the market’s top gainer.

BeInCrypto’s assessment of the coin’s key momentum indicators suggests the possibility of an extended rally. For example, APT’s Chaikin Money Flow (CMF) has also trended upward with its price, and it currently rests above the zero line at 0.20. 

The CMF measures how money flows into and out of an asset. When it rises alongside price, as in APT’s case, it suggests the upward price movement is backed by strong buying volume, making the trend more likely to continue. If the uptrend is sustained, Aptos’ price may attempt to reclaim its yearly high of $19.37 and can possibly surge towards the psychological resistance at $20. 

Read more: Aptos Crypto (APT): A Guide to What it Is and How it Works

However, a surge in profit-taking activity will invalidate this bullish projection. If this happens, APT’s price may drop to its August 5 low of $4.32. 

Sminston With, a crypto analyst, has predicted that Bitcoin’s (BTC) price could surpass $200,000. This forecast came on the same day that the Bitcoin price failed to hit the widely expected $70,000 mark. 

However, With suggests that the prediction might not come to pass this year or next. In this analysis, the platform reveals how the analyst arrived at this conclusion and whether Bitcoin has a chance of hitting this target.

Bitcoin Decay Model Suggests Higher Highs, Analyst Reveals

On Monday, October 21, With posted on X (formerly Twitter), saying that BTC could hit between $199,106 and $207,623. The analyst came to this conclusion after evaluating the Decay Channel model.

The decay model was designed to challenge previous prediction models, particularly the widely recognized Rainbow Chart and Stock-to-Flow (S2F) model. Both of these earlier models have been influential in forecasting Bitcoin’s price movements. 

Still, the decay model presents an alternative perspective by incorporating factors that may account for diminishing returns and slowing growth as the asset matures, as shown below. Interestingly, this forecast is another analyst’s prediction for Bitcoin, which predicts that the coin could reach $200,000 in 2025.

Read more: Top 7 Platforms To Earn Bitcoin Sign-Up Bonuses in 2024

“Depending on the regression method used, linear or nonlinear, the upper bound of decay on January 1st, 2026, looks to be either $199,106 or $207,623. Even with this much decay, this is bullish!” With said.

However, on-chain data obtained by looking at Bitcoin’s Cycle Top Indicator shows that the coin might not go that high. Instead, the 350-day Simple Moving Average (SMA), which spots the highest possible price of a cycle, reveals that BTC’s top could be around $114,256.

In a related development, Jurrien Timmer suggested that Bitcoin’s price might continue to trade sideways for an extended period. 

In his post, Timmer pointed out that Bitcoin’s adoption curve currently lags behind that of gold, making it difficult for BTC to experience rapid acceleration in the near term. This slower adoption could be a limiting factor in Bitcoin’s price growth despite its potential as a store of value.

BTC Price Prediction: Drop Below $63,000 First

According to the daily chart, Bitcoin’s price attempted to hit $70,000, and the wick of the last green candle reached $69,126.

However, as seen below, the coin could not break out of the rising parallel channel, which could have sent it higher. Due to this, BTC is currently trading below $67,000. A look at the Relative Strength Index (RSI) shows that the reading has dropped.

The RSI measures momentum using the size and speed of price changes. When it increases, momentum is bullish. On the other hand, a decrease implies a rising bearish momentum, which seems to be the case with BTC currently.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

If sustained, Bitcoin’s price might drop to $62,995. On the flip side, if momentum becomes bullish again and buying pressure increases, BTC might climb to $69,400 and possibly surpass $73,000 in the short term, aligning with the analyst prediction for Bitcoin.