Maksim Balashevich, founder of Santiment, a data service that collects and sells live crypto-markets data feeds to crypto traders, says his prediction back in January of a boom in cryptocurrency capitalisation that would outpace Bitcoin by a wide margin has come true.
The prediction was based on the Elliott Wave theory, which claims markets enter periods of mass pessimism and euphoria that drive prices. He argued that the crypto markets are driven by fear and greed with altcoins exhibiting particular sensitivity to collective emotional impact as participants fear potentially missing out on rapid gains and extreme risks.
Balashevich (pictured) predicted that market sentiment in the Altcoin market (all digital coins except Bitcoin) remains extremely bullish. He claimed that 2017 would see a dramatic boom, and that this boom is just getting started.
Balashevich wrote on his blog in early January 2017 that the altcoin market is entering the “third of a third” wave in the Elliott Waves theory. This represents a moment the crowd realises that the main trend, either up or down, is occurring. Following the recent rise in Bitcoin, we believe the Altcoin market is set to experience a similar bull market over the course of the next 6-12 months as cryptocurrency investment enters the mainstream conscious.
Santiment predicts that areas focused on smart contracts and anonymity are set to benefit most from the next wave of investment in the cryptocurrency sector given that these are areas that Bitcoin has failed to innovate on.
