In the second half of the current Bitcoin cycle, analysts at CryptoQuant predict a possible significant rise in altcoins. Experts note that historically, during this period, Bitcoin’s dominance decreases, while the altcoin market shows particularly active dynamics.
This is reported by Business • Media
Current Dynamics of Bitcoin and Altcoins
According to analysts, the final phase of the Bitcoin cycle is accompanied by frequent corrections of the main cryptocurrency and declines in altcoins. At the same time, CryptoQuant emphasizes that even under such volatility, the decrease in Bitcoin holdings among medium- and long-term investors in previous cycles has stimulated a gradual increase in the asset’s value.
“However, in the current cycle, Bitcoin has repeatedly faced corrections after slight increases, and during these periods, altcoins experience sharp declines, indicating their overall weakness,” the statement said.
Expectations for the Altcoin Market
Experts believe that with the completion of the current cycle and the subsequent decline in Bitcoin’s dominance, there is potential for a faster rise in altcoins than in previous instances. According to their estimates, there are almost no investors left in the market who are profiting specifically from altcoins.
Analysts also highlight that the influx of new capital in the second half of the Bitcoin cycle has traditionally contributed to the increase in the value of alternative cryptocurrencies, although the current cycle has been marked by heightened volatility.
Earlier, it was reported that Santiment noted the flow of liquidity from Bitcoin to altcoins, which could serve as an additional driver for their growth.