Bitcoin is rising, altcoins are falling: This is a common pattern that has been observed repeatedly in the cryptocurrency market. When Bitcoin starts to rise, altcoins may also go up, but then a decline or stagnation follows.
The expected rally in altcoins seems unlikely, and Bitcoin remains the only reliable asset in the current crypto market. This opinion was presented by Matrixport.
š Todayās #Matrixport Daily Chart ā June 3, 2025 ā¬ļø
Altcoin Hopes Fade as Bitcoin Remains the Only Safe Bet#Matrixport #Bitcoin #BTC #MarketTrends #CryptoResearch #altcoin pic.twitter.com/2pYC3Xh1a9
ā Matrixport Official (@Matrixport_EN) June 3, 2025 Analysts noted that one of the main conditions for an altseason is a sustained decline in the dominance of the first cryptocurrency. However, after a local minimum in mid-May at 61.2%, the indicator has already risen to 63.3%.
Retail activity remains low, and speculative trading in futures is close to minimal levels, experts at Matrixport pointed out.
Vitalik Buterin admitted the dominance of Bitcoin in the crypto industry
Buterin also acknowledged that Bitcoin outperforms Ethereum in some aspects: ease of coding, fewer protocol changes, number of nodes, and its lesser dependence on remote procedure call services or RPC, such as Infura, Alchemy, or Ankr. Other experts in the crypto industry agree with this. The Bitcoin model maintains significant advantages, considering that its codebase is less complex, allowing for secure and reliable BTC transfers. At the same time, the Ethereum code is more complex due to smart contracts and the EVM. Unlike Ethereum, which has undergone about 20 major network updates, including the latest Pectra update on May 8, Bitcoin has had significantly fewer protocol changes compared to its original model.
The bank warns that while the long-term prospects for Bitcoin remain constructive, short-term volatility may reveal vulnerabilities in these treasuries. "A drop below $90,000 is enough for half of the Bitcoin treasuries (by number of companies) to be in the red". The key question, according to Kendrick, is how much pain companies can endure before being forced to sell their Bitcoin assets.
"If Bitcoin prices drop 22% below the average purchase price, they may become forced sellers," he wrote, referring to the collapse of Core Scientific in 2022 as a precedent. At that time, the miner sold thousands of BTC when prices fell just 22% below his cash costs. MicroStrategy (NASDAQ:MSTR), which has pioneered the corporate treasury model for Bitcoin, holds the majority of these reserves ā 86% of the total ā and has a much lower average purchase price of $70,000. However, new participants are at greater risk. "Their assets have doubled over the past two months to just under 100,000 BTC, and their average purchase prices are higher in most cases than those of MSTR," Kendrick notes.
Liquidity will start to return to altcoins no earlier than the end of 2025**, but only for projects with: - A vibrant community; - Corporate partnerships; - Technological uniqueness. Polygon (POL) is one of the favorites for recovery thanks to ZK-tech and RWA focus.