Altcoins
Here’s Why Altcoins Have Underperformed Bitcoin and Altseason May Not Even Be Close
After a brief recovery, the markets have started to consolidate again. While Bitcoin Price Below $68,000, most altcoins also dipped below their intermediate support. This raises concerns about whether altcoins are gearing up for a huge run or are simply following the BTC price rally very closely.
A popular analyst, Miles Deutscher, shared a post and said altcoins are far from bullish. The analyst shed light on the market data and said that the markets are not in a euphoric phase as was the case in 2021. Mainly because institutions are not holding large amounts of BTC as they are in altcoins that are underperforming in 2021. this cycle. The majority of altcoins against Bitcoin are lower than they were in October 2023, while only a few of them have surpassed their previous ATH.
Here are the main reasons given by the analyst why altcoins have underperformed against BTC,
- This is a Bitcoin narrative cycle: – the main narrative that propelled BTC to the new ATH is the spot ETF narrative, while altcoins failed to have a catalyst.
- Specific stories outperformed the meme, AI and RWA were the leaders, and major sectors were laggards
- The dilution is higher than then since almost a million new crypto tokens were created in May.
- Tokens are flooding into the market as nearly $200 million worth of tokens are released every day, adding enough selling pressure to suppress the market.
Now the question is, will things change? If so, when can we expect the tide to turn?
Considering historical trends, altcoins peaked exactly 546 days after the Bitcoin halving and if a similar trend occurs, altcoins could peak in October 2025 or even earlier. Despite the bullish scenarios, dilution is a major factor and therefore asset selection is crucial. Therefore, the analyst suggests that it is time to be patient, maintain conviction, and closely monitor the current crypto market dynamics.