Altcoins

Are we really in an “Altcoin Bull Run?” » Top Analyst Says Only 8 Coins Have Outperformed Since FTX Debacle

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5 months ago

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Analyst Miles Deutscher said that we are not currently in a bull run for the altcoin, or even close to it. If you’re struggling with this cycle, you’re not alone. He recently analyzed the data, revealing surprising truths about the current state of the market.

At first glance, it may seem like crypto sentiment should be euphoric, because Bitcoin ($BTC) is nearing all-time highs (ATH), meme coins are exploding, and celebrities are promoting crypto again. However, the reality is different. Most retail investors do not hold large amounts of Bitcoin; they are invested in altcoins, which have significantly underperformed this cycle.

The OTHER/BTC ratio, which measures the total cryptocurrency market capitalization excluding the top 10 coins, is now lower than it was in October 2023 (8 months ago). This paints a clear picture of the current market situation. Since fall of FTX, only 8 coins have surpassed their previous ATHs compared to Bitcoin. Altcoins (TOTAL3) are still 70% off their previous highs, while Bitcoin is closing in on its ATH.

Miles wrote on X: “This has been a cycle focused on the Bitcoin narrative. The narrative that propelled BTC to the ATHs was the narrative of spot ETFs and the corresponding strong inflows. Although BTC and altcoins are linked, there has yet to be a broader market catalyst like BTC.

Since Bitcoin began its sharp rise from $27,000 in October, altcoins have not seen a sustained rally. The altcoin market phases over the past three quarters show that this is a Bitcoin narrative driven cycle driven by the spot ETF narrative and strong inflows.

Although Bitcoin and altcoins are related, altcoins have not had a broader market catalyst than Bitcoin. Specific narratives, such as memes, AI, and real-world assets (RWA), outperformed, with major altcoins lagging. If you haven’t been well capitalized in these sectors, you’ve probably felt FOMO and the strong temptation to rebalance your portfolio.

Read also: Bitcoin on Edge: Crypto Rating Firm Predicts Market Turmoil Ahead of CPI Release

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