Multicoin Founder Says, “Bitcoin and Ethereum Will Lag Behind in This Cycle,” and Shares What He Expects for Altcoins

Tushar Jain, co-founder of cryptocurrency investment firm Multicoin Capital, said that prolonged periods of decline weaken investors’ faith in strong bull market movements. According to Jain, Bitcoin (BTC) and Ethereum (ETH) lagging behind the market in this cycle could lead to capital shifting towards high-quality altcoins, resulting in much sharper gains in these assets.

Jain stated that one of the common mistakes investors make is “bear market trauma,” forgetting how powerful price movements can be in a bull market after a long and painful period of decline. He cited Ethereum’s rise from $10 to $1,000 in 2017 and Solana’s (SOL) increase from $2 to $250 in 2021 as examples.

Jain stated that he believes BTC and ETH will underperform significantly compared to other high-quality crypto assets in the current market cycle. Therefore, he argued that the total cryptocurrency market capitalization may not need to increase as much as in the previous cycle for altcoins to experience significant price increases.

Citing CoinGecko data, Jain noted that the total cryptocurrency market capitalization nearly quadrupled, growing from approximately $770 billion in 2021 to $3 trillion. He stated that if the market were to grow only twofold this time, the total value could reach $4.2 trillion from $2.1 trillion.

*This is not investment advice.

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