Bitcoin reaches new highs, but year-to-date, only a few altcoins have achieved positive gains
Why is this happening?
The core narrative of this bull market is driven by traditional finance and traditional application scenarios, with prices driven up by MEME and ETFs.
1. The usual reason: Institutional funds are skewed towards Bitcoin rather than the currently popular crypto narratives, nor the Ethereum ecosystem.
2. The PCE index remains above the 2% target level, leading the market to expect that the Federal Reserve will maintain high interest rates, thereby suppressing risk appetite for high-volatility assets.
3. Due to the excessive gains of Bitcoin in the first half of the interest rate cut cycle, Ethereum and other altcoins have not enjoyed the same institutional buying pressure, coupled with a low willingness for capital rotation from Bitcoin to altcoins, disrupting the traditional altcoin seasonal rhythm.
4. After 2022, the average returns of altcoins have been consistently lower than Bitcoin, with a surge of new projects released, overall liquidity being diluted, and quality projects struggling to stand out, resulting in people and liquidity flowing only towards the top narratives and MEME.