Analyst Reveals Potential for Cosmos Amid Grayscale Altcoin Fund Release

  • Compared to the overall market, ATOM has seen relatively modest gains of 35% in the past month.
  • Crypto analyst highlights ATOM’s current low against Bitcoin as an indicator of its undervalued status, suggesting significant growth potential.
  • Grayscale’s launch of a new fund which includes ATOM for staking income, positions the asset for further growth.

After Bitcoin has hit new all-time highs almost on a daily basis, many altcoins are rallying too. But one major coin hasn’t exactly shared the same gains: ATOM.

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While many projects gained several hundred percent, Cosmos only appreciated by 35% in the past month. This seems a lot when you look at it in comparison to the stock market, but this isn’t really all that much when compared to competitors like Ethereum, which has gained over 50% in a month.

Cosmos (ATOM), 1-month graph, source: CoinMarketCap

Currently one ATOM trades for USD $13.51 (AUD $20.45), which is still well below the all-time high of USD $44.70 (AUD $67.67) reached in September of 2021.


Trader Reveals Bullish Case for ATOM

Michaël van de Poppe, a well-regarded figure in the crypto analytics sphere, has recently shed light on the positioning of Cosmos (ATOM) within the current market dynamics, especially in relation to Bitcoin’s recent surge past the USD $70,000 mark.

According to van de Poppe, ATOM has reached a cycle low when measured against Bitcoin, a situation that traditionally signals a significant potential for upward movement in the market. This particular observation is crucial as it suggests that, relative to Bitcoin’s strong performance, ATOM is undervalued, indicating a ripe opportunity for growth and a bullish outlook for the asset.

Cosmos/ Bitcoin, source: TradingView/ Michaël van de Poppe

Van de Poppe also highlights the importance of confirming a bullish divergence on the weekly charts—a technical indicator of a possible market turnaround—as essential for validating ATOM’s prospective upward trajectory and guiding investment decisions.

In essence, van de Poppe’s analysis suggests that despite ATOM’s low performance in comparison to Bitcoin’s rally, the underlying indicators point towards a significant potential for recovery and growth.

Grayscale Releases New Investment Opportunity in Nine Altcoins

One bullish case for ATOM is the announcement Grayscale has recently made. In a press release, the fund manager confirmed the debut of its Grayscale Dynamic Income Fund (GDIF).

This marks the firm’s entry into actively managed crypto funds, focusing on generating staking income from various crypto assets, with the promise of distributing rewards in USD quarterly.

According to Grayscale, the fund will feature Aptos (APT), Celestia (TIA), Coinbase Staked Ethereum (CBETH), Cosmos (ATOM), Near (NEAR), Osmosis (OSMO), Polkadot (DOT), Sei (SEI) and Solana (SOL).

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CEO Michael Sonnenshein said this puts Grayscale at a prime position in crypto:

As our first actively managed Fund, GDIF is an important expansion of our product suite and enables investors to participate in multi-asset staking through the convenience and familiarity of a singular investment vehicle.

Michael Sonnenshein

The fund utilises a strategic approach to select its portfolio, considering factors like staking rewards, market capitalisation, and liquidity.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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