Bitcoin Dominance vs. Altcoins: This “Unusual Cycle” Is Becoming “Increasingly Difficult to Manage”

Cryptocurrency researcher TradeTheFlow has suggested an unusual cycle for Bitcoin Bitcoin/USD and altcoins deviating from the typical market sequence.

What happened: TradeTheFlow outlined the typical cryptocurrency market sequence, which begins with Bitcoin dominating during bear markets, continues to rise in the early stages of a bull market, and then declines as investors begin to allocate capital to higher-risk assets, known as “altcoin season.”

The analyst noted that this cycle did not go as expected.

Bitcoin continues to dominate the market since the last bearish phase, currently accounting for 57% of the total cryptocurrency market capitalization.

“We are in an atypical market cycle,” TradeTheFlow tweeted. “The real bull phase has yet to really begin.”

Also read: Cryptocurrency trader is ‘all in’ on altcoins, predicts bullish market turn

Why it matters: TradeTheFlow predicts that the next leg of the bull market will likely be driven by the same two or three majors, with occasional spikes fueled either by short-term attention or by blockbuster products that attract real users.

“I think it’s increasingly important to choose your alts carefully,” the analyst advises. “Don’t be fooled into thinking that simply holding dead alts with no product-market fit and no organic traction will magically 10x your portfolio.”

TradeTheFlow’s insights suggest a maturing market, making a widespread alt season more difficult, and suggest a more strategic approach to cryptocurrency investing.

And then?:Bitcoin’s influence as an institutional asset class is set to be explored in depth at Benzinga’s upcoming Future of Digital Assets event on November 19.

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