Why Altcoins Are Underperforming This Cycle, and Can They Rise Big
We are not in an altcoin bull market. Not even close.
If you are struggling with this cycle, you are not alone.
I just dug up some data that reveals some shocking facts about the current market conditions, and holds the key to when things will get better.
At first glance, you would think crypto sentiment would be excited right now.
• $BTC is approaching ATH again
• Memecoins are exploding
• Celebrities are promoting crypto again
But this is far from the truth.
If you dig a little deeper, it is not hard to find out why.
Most retail investors do not hold a lot of Bitcoin, they hold altcoins.
Altcoins have been significantly underperforming in this cycle so far.
1. This is a Bitcoin narrative-led cycle.
The narrative that has driven BTC to new all-time highs is the spot ETF narrative, and the corresponding strong inflows.
While BTC and altcoins are correlated, there is no broader market catalyst as strong as BTC right now.
2. Specific narratives significantly outperform others (the main narrative lags behind).
So far, meme, AI, and RWA have been the clear narrative leaders of this cycle.
If you don't have sufficient capital allocated in these areas, you may feel FOMO and a strong temptation to rebalance your investments.
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