Bitcoin recently surged past $68,686, just $314 shy of its all-time high, while Bitcoin-based NFTs and inscriptions also saw significant gains. Despite the rally, many in the crypto community feel left behind—holding altcoins that stagnated or dropped instead of participating in Bitcoin’s upward trajectory.
The Majority Missed the Rally
Wall Street continues pouring funds into Bitcoin ETFs, yet retail investors lack the capital to join the rally. Earlier this year, many allocated funds to Bitcoin and Ethereum inscription projects, still awaiting a "third wave" of inscription hype. With the rise of staking platforms like EigenLayer, Blast, and Merlin, retail holdings are now locked—ironically, these staking mechanisms may have prevented premature selling of ETH or BTC.
Others sold their Bitcoin holdings post-ETF approval, assuming the news was "priced in," underestimating the sustained demand from institutional inflows. Meanwhile, some hesitated due to "FOMO" or "fear of heights," waiting for a major correction that never came.
This cycle defies past bull market patterns: Bitcoin dominates, while altcoins lag.
Why Is Bitcoin Outperforming Altcoins?
On February 29, Bitcoin spot ETFs hit a record **$7.69 billion** in daily trading volume, maintaining $4–5 billion in subsequent days. This demand surge—outpacing miner supply—drives Bitcoin’s price toward new highs.
The Crypto Fear & Greed Index hit 90 (extreme greed), yet altcoins remain stagnant. Analysts speculate that ETF inflows aren’t recycling into altcoins but exiting as USD, delaying any altseason.
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Key Data:
- Bitcoin dominance: 50.19% (vs. <48% in past altseasons)
- Altcoin Season Index: 73/100 (threshold: 75)
Markus from Matrixport notes, "This bull run centers on Bitcoin—unlike DeFi Summer’s altcoin frenzy." For alts to rally, Bitcoin’s dominance must drop below 50%.
Is an Altseason Still Possible?
Ethereum broke $3,700 despite BlackRock’s ETF delay, now ranking as the 23rd-largest global asset by market cap. Key narratives:
- Restaking: EigenLayer’s $100M funding, ether.fi/Renzo’s growth.
- Modular blockchains: Avail ($27M seed), Lava Network ($15M seed).
Solana also shows promise with Firedancer (targeting 1M TPS) and AI/DePIN projects. Recently, ENS, OP, and STRK rallied, hinting at renewed altcoin optimism.
FAQs:
Q: Why aren’t altcoins rising with Bitcoin?
A: ETF demand absorbs liquidity; investors cash out to USD instead of rotating to alts.
Q: When could altseason start?
A: Watch for Bitcoin dominance falling below 50% and the Altcoin Season Index exceeding 75.
Q: Which altcoins have potential?
A: ETH (restaking), SOL (scaling), and modular blockchain tokens (Avail, Lava).
👉 Explore altcoin strategies for 2024
Bitcoin’s rally isn’t over—but navigating this cycle requires adapting to its unique dynamics.
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