Jun 3, 2025
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Analyst Predicts Altcoin Recovery Following Bitcoin’s Market Cycle Shift
Bitcoin is showing resilience, currently trading above $104,000 after a recent peak of over $111,000. In contrast, Ethereum and other altcoins remain below their previous highs, indicating a divergence in market performance.
- Analysts are examining investor behavior and capital flows between Bitcoin and altcoins.
- CryptoQuant analyst Dan notes that past cycles saw investors gradually moving capital from Bitcoin to altcoins.
- This reallocation typically led to significant gains for altcoins during late bullish phases.
- Currently, frequent minor corrections in Bitcoin's price have resulted in more pronounced downturns for altcoins, with few altcoin investors realizing profits.
- Historical patterns suggest Bitcoin's dominance declines toward the end of cycles, potentially signaling upward movements for altcoins later.
Another CryptoQuant analyst, Maartunn, reports that over 75% of Tether (USDT) deposits to Binance since November 2023 come from large wallets, known as whales. This trend indicates substantial whale activity on Binance, suggesting preparations for potential market shifts or purchases of Bitcoin and altcoins.
- Whale activities often precede increased volatility and trading activity.
- The concentration of stablecoin deposits hints at strategic positioning by major market participants.
