Glassnode lead expert predicts that the millennials who became rich with Bitcoin cannot gamble their fortunes on altcoins.
Glassnode analyst indicated that the days of memecoins realizing big money appeared to hit the last gasp during the recent Bitcoin cycle. James Check considers the memecoin bull run ends soon, leaving little opportunity for the millennials to delve into the memecoins.
The Glassnode on-chain expert forecasted on Tuesday, May 28 that most of the young Bitcoin holders would hold onto their earnings and not gamble on the riskier assets.
Millennials Unwilling to Allocate Earnings to Shitcoins
Check indicated that folks portray unwillingness to allocate their meaningful earnings to the shitters, aware that they can earn handsomely by sitting in the spot. The Glassnode analyst added in a post on X (formerly Twitter) urging the millennials not to fuck it up with memes warning that betting on them is different from football.
Check argued that the demand for the shitcoins has been fueled by millennial crypto natives who are now shifting from getting rich to staying rich in their new phase of financial lives.
Check added that the theory of millennials avoiding shitters is supported by multiple surveys that reveal crypto ownership remains overrepresented within the 18-40 age bracket. The survey published on Tuesday, May 28, indicated that 62% of the Gen Z respondents considered crypto the future of finance.
The Glassnode analyst acknowledged that the investment had become wiser since the previous bull market. The community can separate the winners, such as Bitcoin, from the crowd of altcoins that attract no severe demand.
The altcoin holders may encounter trouble locating willing buyers for largely speculative tokens.
Check ruled out the likelihood of altcoins avoiding the last gasp. The analyst argues that the situation where Millenials and Gen Z are urging the subsequent generations to purchase their shitcoins is similar to boomers who encouraged boomers to acquire overvalued houses.
The Glassnode analyst’s thesis is yet to materialize. Nevertheless, Bitcoin has only rallied 50% this year following the spot Bitcoin exchange-traded funds (ETFs) approval by the US Securities and Exchange Commission (SEC).
In contrast, memecoins have surpassed the Bitcoin surge, though lacking explicit utilization. In particular, DOGE, PEPE, WIF, and the second-ranked meme by market value SHIB, rallied higher than Bitcoin.
Glassnode Predicts Bitcoin Cycle Creating Wealth Effect
The perspective conveyed by Glassnode analyst is an often repeated phenomenon that Bitwise’s chief investment executive addressed. Mat Hougan revealed in a March publication that the wealth effect was playing out.
The Bitwise executive indicated that while the long-term holders of Bitcoin realize higher wealth levels prompted by rising demand for the token, they tend to pursue profit by cashing in and find comfort by gambling down the risk curve.
The core driver of altcoin season is primarily the classic wealth effect. Hougan indicated that as the natives realize money via Bitcoin, they pursue speculative assets where they commit investment.
Hougan indicated that altcoins have lower volume and market value relative to Bitcoin. The Bitwise executive observed that they did not invest much money into the altcoins, thereby dramatically pumping the price.
Hougan indicates that the phenomenon is a tale and old, as investors within the traditional financial markets readily cash out on the profits realized in the large-cap stocks only to invest within the riskier small-caps.
Hougan indicated that the catalyst for the altcoin is beyond the percentage return from Bitcoin. Instead, it is the aggregate size of the wealth effect.
Check himself indicates that he often urged attention towards the firesale portrayed by the long-term Bitcoin holders at the onset of this year. He warned that they portrayed profit-taking conduct replicating the previous bull market events.
Check revealed that the onset of May had the long-term Bitcoin holders retracting to holding the token. The Glassnode expert noted that such Bitcoin owners tend to hodling and sell only when motivated by higher prices.
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