When Bitcoin (BTC) hits an all-time high (ATH), many expect altcoins to follow—but this doesn't always happen immediately. Here’s why:
1. BTC Dominance Rises
During ATH surges, investors typically rotate capital into Bitcoin, increasing BTC dominance (its market share vs altcoins).
Altcoins often underperform until BTC cools down or consolidates.
2. Risk-Off Sentiment
ATHs bring excitement—but also caution.
Institutional investors often stick to Bitcoin during volatile peaks, avoiding riskier small-cap altcoins.
3. Liquidity Drain
Capital flows into BTC can drain liquidity from alts, especially in the early stages of a breakout.
4. Macro & Regulatory Pressure
Altcoins face more scrutiny than BTC (e.g., SEC targeting tokens, not Bitcoin).
This creates hesitation among investors.
5. Delayed Rotation
Historically, altcoins pump after BTC tops or stabilizes.
This phase is called “altcoin season”, and often lags weeks behind a BTC rally.
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TL;DR: Altcoins typically follow Bitcoin after a lag. Once BTC cools off or consolidates, altcoin capital rotation usually begins—especially for strong narratives (AI, L2s, DePIN, etc.).
