Altcoin sentiment, portfolio allocations near multiyear lows: Ansem

Crypto trader Ansem said on X that cryptocurrencies have significantly underperformed other assets over the past few years, with altcoins hurt by an exodus of key talent to the AI industry, a lack of DeFi innovation, and a repricing of gold. Ansem added that a large-scale liquidation event in the altcoin market on Oct. 10 last year further weighed on the sector, leaving both institutional and retail investors’ sentiment and portfolio allocations to altcoins near their lowest levels in years and possibly at record lows. At the same time, Ansem said some altcoins face limited selling pressure from venture capital firms, have achieved real product-market fit on crypto infrastructure, and could benefit from an improving regulatory environment. Capital will likely become more concentrated in a small number of fundamentally strong tokens, Ansem said, adding that prices could rise quickly once those inflows begin.