Bitwise chief investment officer Matt Hougan cautions that not every token having a price surge in the cryptocurrency market "deserves to be.”
Bitwise chief investment officer Matt Hougan warned investors to approach crypto projects with high valuations skeptically as the "wealth effect" is occurring in the crypto market. He indicated that traders are reallocating portions of their Bitcoin (BTC) into other crypto investments, causing price increases across the market.
In a recent series of posts on X, Hougan explained that Bitcoin’s recent price surge has led to investors spreading their profits across more questionable crypto tokens, potentially giving them a false sense of legitimacy.
On March 7, Cointelegraph reported that altcoins, led by memecoins and artificial intelligence (AI) themed cryptos, outperformed BTC over the last week.
