Bitcoin Investors Are Staying Put – Why Altcoins May Struggle This Cycle

A crypto strategist argues that Bitcoin investors are unlikely to drive an altcoin surge this cycle, as institutional buyers dominate BTC inflows.

Unlike in past bull markets, where profits often rotated into alts, the current rally is fueled by Bitcoin spot ETFs and MicroStrategy’s aggressive accumulation—entities focused on long-term holdings rather than short-term speculation.

The analyst points out that much of Bitcoin’s capital now comes from platforms like Interactive Brokers and ThinkorSwim, rather than traditional crypto exchanges.

This shift means the liquidity that previously boosted altcoins is now locked in institutional hands. Additionally, with thousands of altcoins competing for investment, there simply isn’t enough capital to drive a broad market-wide surge.

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Bitcoin’s dominance remains strong at nearly 60%, showing little sign of capital flowing into altcoins. While an overall altcoin rally seems unlikely, the analyst suggests dogwifhat (WIF) could be nearing a rebound after dropping below $1, citing retracement patterns from previous Binance listings.

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.