Bitcoin dominance may pose a near-term obstacle


For many traders, the "altcoin season" strategy relied on a familiar pattern: Bitcoin profit flows into smaller cryptocurrencies, igniting broad upward waves in the market. But new indicators at the blockchain and market structure levels suggest that this mechanism is weakening, which could significantly alter the trajectory of altcoins in the next phase of the cycle.
Ky Young Jo, CEO of CryptoQuant, says that Bitcoin rotation trading into altcoins has "basically disappeared," citing data showing that altcoin trading activity against Bitcoin has fallen to its weakest levels since 2021. Meanwhile, the altcoin market appears more concentrated, with fewer large-cap coins holding most of the sector's value — another factor that could limit the scope of any future rally.
BTC0.80%
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MrFlower_XingChen
· 3h ago
To The Moon 🌕
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HighAmbition
· 4h ago
To The Moon 🌕
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