Experts Predict Major Crypto Move as Bitcoin-Altcoin Correlation Drops

The latest analysis from crypto research firm Alphractal suggests that the connection between altcoin markets and Bitcoin has weakened once again.

According to the firm, this shift could signal an impending major move in the crypto space, as similar patterns in the past have often preceded significant price changes or trend reversals.

Alphractal notes that when the correlation between Bitcoin and altcoins drops, it has historically been linked to local market peaks, strong upward movements, or heightened volatility. The company interprets the current situation as a potential sign of a major surge on the horizon.

In addition, Alphractal highlights that large investors, commonly known as whales, are increasingly shorting Bitcoin, Ethereum, and other altcoins, especially when compared to retail investors. This trend is tracked through the “Whale vs. Retail Investor Ratio,” which has historically risen before substantial market shifts. The firm points out that similar patterns in the past have often indicated upcoming volatility.

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Meanwhile, the firm’s analysis of Bitcoin’s “Supply Age Bands” indicates a noticeable decline in Short-Term Investor Supply (STH), which refers to Bitcoin acquired within the last three months. This decrease suggests that fewer investors are currently interested in accumulating Bitcoin. Historically, when STH levels are high, it reflects a period of market enthusiasm, while low levels often correlate with price corrections.

Alphractal’s insights hint that the crypto market could be on the brink of a pivotal change, as whale activity and declining short-term holdings may set the stage for increased volatility or a possible price breakout.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.