The cryptocurrency market started the week lower, with most cryptocurrencies falling behind tech stocks in premarket trading. Some traders and investors believe the plunge presents a buying opportunity Bitcoin (BTC) and some altcoins on favorable terms.
In the last 24 hours Bitcoin lost 5,51%, while altcoins fell by 7,71%. The total cryptocurrency market capitalization excluding BTC according to TradingView (TOTAL2) is $1,34 trillion, which is slightly more than the market leader.
On January 26, when the collapse began, the former CEO Binance Changpeng Zhao (CZ) urged investors to "stick to fundamentals," adding that "time will be on your side."
In this regard, the artificial intelligence models Grok 2 were tasked with analyzing the information and drawing a conclusion about which cryptocurrencies are best to buy at the beginning of this year. Its answer was non-trivial - bitcoins and altcoins.
According to AI, BTC is still the best choice for conservative investors given its “established market position, liquidity and the perceived security" of Bitcoin.
On the other hand, active investors can benefit from the “more profitable opportunities” provided by altcoins.
The potential for significant returns, fueled by innovations in blockchain technology and regulatory changes, makes altcoins attractive to those willing to accept increased risks.
Including Bitcoin for stability and choosing altcoins with strong fundamentals or innovative use cases could balance risk and reward, Grok concluded.