A top crypto strategist has warned that capital invested in Bitcoin is unlikely to flow into the altcoin market as seen in previous cycles. This shift in market dynamics could have significant implications for altseason expectations.
Bitcoin Investments Remain Steady
Pseudonymous analyst The Flow Horse told their 259,500 followers on social media that many investors who contributed to Bitcoin’s strong performance are not moving their profits into altcoins.
“The money that bought and moved Bitcoin has left this market. This is due to ETFs and Saylor. Most people here expected this capital to flow into altcoins, but instead, it remains on platforms like IBKR and ThinkorSwim. The market structure has changed—adapt or be left behind.”
Liquidity Issues in the Altcoin Market
The analyst argues that a traditional altseason—where altcoins outperform Bitcoin—is unlikely. This is due to the growing number of digital assets and insufficient liquidity to support a broad market rally.
“The concept of altseason will only become more diluted over time. There are too many unnecessary assets, and not enough money to push them higher.”
Bitcoin Dominance and Market Impact
The strategist is closely monitoring Bitcoin dominance (BTC.D), which currently stands at 59.88%. This metric reflects the percentage of total crypto market value held by BTC, providing insight into altcoin performance relative to Bitcoin.
Additionally, the analyst notes that dogwifhat (WIF) is showing signs of a potential breakout following a significant correction. The asset recently fell below $1, but has rebounded 9.9% in 24 hours, trading at $1.18 at the time of writing.
As Bitcoin maintains its dominant position, the growth of altcoins may continue to be restricted. Investors should remain aware of these market shifts and adjust their trading strategies accordingly.
Stay updated with Dey There for the latest insights on Bitcoin dominance, crypto liquidity trends, and market dynamics.
