Altcoin
Are we really in an ‘altcoin bull race?’ Top analysts say only 8 coins have outperformed since the FTX debacle
Analyst Miles Deutscher said that we are not currently in an altcoin bull run, not even close. If you’re struggling with this cycle, you’re not alone. He recently analyzed the data, revealing some surprising truths about the current state of the market.
At first glance, it might seem that cryptocurrency sentiment should be euphoric because Bitcoin ($BTC) is nearing all-time highs (ATH), meme coins are exploding, and celebrities are once again promoting cryptocurrencies. However, the reality is different. Most retail investors do not hold large amounts of Bitcoin; are invested in altcoins, which have significantly underperformed this cycle.
The OTHERS/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 the fall of FTX, only 8 coins have surpassed their previous ATHs compared to Bitcoin. Altcoins (TOTAL3) are still 70% away from previous highs, while Bitcoin is approaching its all-time high.
Miles wrote on X: “This has been a cycle driven by the Bitcoin narrative. The narrative that pushed BTC into ATHs was the narrative of spot ETFs and corresponding strong inflows. Although BTC and altcoins are interconnected, there has not yet been a strong broader market catalyst, as BTC has had.
Since Bitcoin began its sharp rally from $27,000 in October, altcoins have not seen a sustained rally. The altcoin market phases over the last three quarters show that it has been a cycle driven by the Bitcoin narrative, driven by the spot ETF narrative and strong inflows.
Although Bitcoin and altcoins are interconnected, altcoins have not had a significant, broader market catalyst like Bitcoin. Specific narratives, such as memes, artificial intelligence, and real-world assets (RWA), have outperformed, with major altcoins lagging behind. If you haven’t been well capitalized in these sectors, you’ve probably felt FOMO and strong temptation to rebalance your portfolio.