“While the current cycle is characterized by frequent Bitcoin corrections and sharp altcoin declines, this doesn’t mean all hope is lost for altcoin investors,” CryptoQuant commented. In previous cycles, a reduction in Bitcoin held by mid- and long-term investors often paved the way for new capital inflows, which fueled broader market rallies.

Analysts point out that as the cycle progresses and fresh capital enters the market, altcoins have traditionally staged significant recoveries—sometimes outperforming Bitcoin during these late-phase rallies. However, the current cycle has been more volatile: even modest Bitcoin gains have been followed by pronounced corrections, during which altcoins have demonstrated marked weakness.

Despite this, CryptoQuant maintains that as the end of the current cycle approaches, Bitcoin’s dominance could diminish, potentially unlocking room for altcoins to rally more aggressively. The firm also highlights that there are now very few investors booking profits from altcoin positions, suggesting an environment ripe for a possible turnaround should sentiment shift.

For additional perspective, recent research from Santiment noted a gradual rotation of liquidity from Bitcoin into altcoins, further supporting the notion that a shift in market leadership could occur as the cycle matures.