Bitcoin Soars as Altcoins Struggle in Market Shift
Key Takeaways
- Bitcoin (BTC) reaches new all-time highs and attracts capital.
- Altcoins like Ethereum (ETH), Solana (SOL), and Ripple (XRP) fall short of expectations.
- Since the launch of the Bitcoin ETF, nearly 1 billion USD in altcoin long positions have been liquidated.
- Bitcoin dominates the market with over 60% of total market capitalisation.
- A classic “altseason” like in 2021 has yet to materialize.
Bitcoin Attracts Capital – Altcoins Lose Ground
Since the launch of the Bitcoin ETF in early 2024, the market structure has changed significantly. While Bitcoin continues to hit new highs, many altcoins remain well below their previous all-time highs. Ethereum, for example, is trading far below its record value of around 4,891 USD from 2021. Solana, Ripple, and Binance Coin have also failed to break through key resistance levels.
A look at liquidation data shows that Bitcoin shorts worth approximately 190 million USD have been closed out – a clear sign of rising demand. In contrast, altcoins have experienced massive long liquidations. Traders betting on an altseason were caught off guard.
Why No Altseason?
In previous bull markets – like in 2021 – Bitcoin and altcoins moved in sync. Once BTC hit a new high, capital often rotated into altcoins. This pattern is currently absent. Data from platforms like CryptoQuant and Glassnode show a clear divergence: while Bitcoin is building structural demand, altcoins remain trapped in a speculative long squeeze.
Since April 2024, the Cumulative Liquidation Delta (CLD) for altcoins has remained consistently negative – a sign that long positions are being liquidated regularly. Traders are betting on rising prices, but demand is lacking. The result: waves of liquidations, failed breakouts, and resistance levels that cannot be breached.
Bitcoin Dominance Continues to Grow
Currently, Bitcoin dominance stands at over 61%. This means that more than 60% of the total crypto market capitalisation is concentrated in BTC. During phases of strong BTC performance, it is typical for altcoins to lose capital. However, the gap is particularly stark this time.
Investors appear to be focusing on Bitcoin – possibly due to institutional demand driven by the ETF. Altcoins, on the other hand, are considered riskier and more speculative. Without clear fundamentals or organic demand, the upside potential remains limited.
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What Does This Mean for You?
If you’re hoping for an altseason, caution is advised. Current market conditions do not suggest that altcoins will see strong short-term gains. Without structural demand and sustained capital inflows, the risk remains high. Bitcoin, on the other hand, is showing strength and continues to attract capital.
Before investing in altcoins, carefully assess whether there are fundamental reasons for a potential rise. Simply hoping for a repeat of 2021 is not enough. The market has changed – and so have the rules.
Our Assessment
The current market environment clearly shows Bitcoin’s dominance. Altcoins are increasingly under pressure as speculative long positions lack real demand. A classic altseason is not currently on the horizon. Those investing in altcoins should be aware of the risks and avoid speculating on short-term trend reversals. For now, Bitcoin remains the clear market favourite.
Sources
- CryptoQuant
- Glassnode
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 104323 |
| 24h % | -0.38 % |
| 7d % | -4.86 % |
| 30d % | 8.13 % |
| 60d % | 28.04 % |
| 1y % | 52.85 % |
| Market Cap | $2,073,198,450,595.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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