Bitcoin Shows Strength While Altcoins Lag
Bitcoin remains resilient in the current cryptocurrency cycle, trading above $104,000 after recently pulling back from its $111,000 all-time high last month. In contrast, Ethereum and many other altcoins still struggle to surpass historical peaks set years ago, revealing a widening performance gap.
Analyst Insights on Market Cycle Dynamics
CryptoQuant analyst Dan highlights that previous cycles saw investors gradually reduce long-term Bitcoin holdings as capital shifted toward altcoins, driving altcoin price surges during late bullish stages. However, this cycle diverges, with altcoins experiencing sharper downturns and fewer realized profits.
Despite altcoin weakness, Dan remains optimistic. Historical trends suggest Bitcoin dominance typically declines near the cycle’s end, potentially heralding a significant altcoin rally.
Whale Activity Signals Possible Upcoming Shift
Complementing this view, CryptoQuant’s Maartunn revealed that over 75% of Tether (USDT) deposits to Binance come from large “whale” wallets since November 2023. This concentration indicates that major holders may be positioning for notable market moves, possibly including altcoin accumulation after Bitcoin’s final push.
What Investors Should Watch For
Stablecoin inflows from whales often precede increased market volatility and trading activity. Investors should monitor Bitcoin momentum and whale-driven capital flows as potential signals for when altcoins may recover and outperform.