Blockstream CEO Adam Back has predicted that the prices of alternative cryptocurrencies could potentially plunge by another 90%.
Back, who was famously cited by Satoshi Nakamoto in the Bitcoin white paper, has urged investors to buy either Bitcoin or Bitcoin treasury stocks.
The British cryptographer and cypherpunk is also bearish on cryptocurrency index exchange-traded funds (ETFs).
Bitcoin treasury companies have become the new “alt season” for those who are willing to engage in speculative trades within the crypto sector.
In his most recent post, Back argues that holding the stocks of the companies that offer exposure to Bitcoin is “certainly safer” compared to “bag holding” cryptocurrency tokens.
He believes that the companies that act as proxy vehicles for Bitcoin exposure are safer bets due to the fact that they are subject to auditing and financial disclosures. Such companies also operate under securities laws, meaning that investors benefit from regulatory clarity. Finally, Bitcoin NAV floors provide these companies with a fundamental valuation basis.
No altcoin season in sight
The Altcoin Season Index, which measures the performance of the top 50 biggest cryptocurrencies, currently stands at 12 (out of the maximum 100 points).
Another altcoin season will arrive if 75% of the top 50 cryptocurrencies end up outperforming Bitcoin over the last 90 days.
The leading altcoins have severely underperformed Bitcoin over the past week, with Ethereum (ETH) and XRP recording double-digit losses.
