Altcoin Unit Bias Is 'Wrecking' New Crypto Traders, Warns Samson Mow - Cryptured.com

Samson Mow, CEO of Jan3, claims that Bitcoin’s dominance hasn’t yet reached the end of its upward trend after examining how altcoin prices would compare to Bitcoin if all were on equal terms with overall supply.

$88,216 is his prediction for Bitcoin (BTC). Dominance is anticipated to increase further because the ratio has already surpassed the proportions that many cryptocurrency specialists predicted it would reach by the end of 2024.

According to Mow’s April 19 X post, “Unit bias is absolutely destroying the uninitiated.” Unit bias, a psychological technique in behavioral economics that postulates that people typically prefer to own a complete unit or stock regardless of its price and size, is what Mow claimed frequently leads novice investors to believe that cheaper altcoins are a better value than owning a portion of a Bitcoin.

Mow questions altcoin valuations on level playing field

“For about $85,000, you can purchase one twenty-one millionth of the Bitcoin supply,” Mow stated. “What happens if you take unit bias out of alts to figure out the equivalent of 1/21 million?” he questioned.

He noted that ETH $1,584 would now be valued at $9,200, XRP $2.08 would be valued at $5,800, and Solana SOL $138.96 would be valued at $3,400. Based on CoinMarketCap data, these prices would represent increases of roughly 278,746%, 470%, and 2,328%, respectively, from their prices at the time of publication.

“These alts aren’t worth that much,” Mow remarked.

“Unit bias is a core foundational framework of the normie mind,” stated Sunny Po, an anonymous Bitcoin supporter, on January 12. “Cheaper is better.”

According to Mow, “most” cryptocurrencies exploit unit bias by using a very high total supply, making it difficult for buyers to understand what they’re purchasing.

Mow claimed that the dominance of Bitcoin is increasing “so much higher” based on his estimations. Traders frequently use Bitcoin dominance, a metric that represents the cryptocurrency’s percentage of the overall market capitalization, to predict when the price of Bitcoin may be approaching a peak.

In the past, a drop in Bitcoin Dominance has frequently marked the beginning of altcoin season, as investors shift their money from Bitcoin to altcoins in search of greater returns.

According to TradingView statistics, Bitcoin Dominance stands at 63.69% at the time of publication.

Prior to the start of an altcoin season, a number of cryptocurrency specialists predicted that Bitcoin Dominance would peak at 60% in late 2024.

“I don’t think it is going back up to 70%,” stated Benjamin Cowen, the founder of Into The Cryptoverse, in August 2024. “My target for Bitcoin dominance has been 60%.”