🚨 Bitcoin has reached a record level. So why aren't altcoins rising?
Bitcoin is setting new highs, but the altcoin market remains flat. Here are the main reasons for this:
1. Bitcoin dominance is increasing
More money is flowing into Bitcoin compared to the rest of the market. When dominance increases, it usually means that altcoins are being ignored. $BTC is the first stop for most investors.
2. Oversupply of altcoins
There are thousands of altcoins, many of which have overlapping use cases and little differentiation. Capital is spread across the market, making it difficult for any individual project to gain strong momentum.
3. Ethereum is not leading yet
The ETH/BTC ratio is still weak. Historically, strong growth in Ethereum often signals the beginning of a broader altcoin rally. As long as ETH is not outperforming BTC, most altcoins tend to lag behind.
4. Altcoin season comes after Bitcoin cools down
Altcoins often start to rise after Bitcoin completes its main surge or enters a consolidation phase. Right now, the focus is on Bitcoin.