$BTC While Bitcoin continues to break new records, the altcoin market remains largely stagnant. Here's a breakdown of the key factors behind this:
1. Bitcoin’s Market Share Is Increasing
A larger portion of investment is flowing into Bitcoin over other cryptocurrencies. As Bitcoin dominance grows, it typically indicates that altcoins are being sidelined. Investors usually enter the crypto space through BTC first.
2. Too Many Altcoins Diluting Capital
The crypto landscape is crowded with thousands of altcoins, many of which serve similar purposes with minimal uniqueness. This spreads investor interest and funds too thin, making it difficult for individual altcoins to gain traction.
3. Ethereum Is Yet to Take the Lead
The ETH/BTC ratio remains subdued. Historically, Ethereum outperforming Bitcoin has marked the beginning of an altcoin surge. Until ETH gains strength, altcoins may continue to underperform.
4. Altcoin Rallies Tend to Trail Bitcoin Peaks
Altcoins often experience growth after Bitcoin completes a major upward move or settles into a consolidation phase. At the moment, attention is still heavily focused on Bitcoin, with altcoins typically gaining momentum later.