Here’s Why Altcoins Underperformed Against Bitcoin and Altseason May Not Be Even Close

After a brief recovery, the markets began to consolidate again. While Bitcoin Price below $68,000, most altcoins also fell below their interim support. This raises concerns about whether altcoins are gearing up for a big run or are just closely following the rise in BTC prices.

A popular analyst, Miles Deutscher, shared a post and said altcoins are nowhere near a bull run. The analyst clarified the market data and said that the markets are not in a euphoric phase like in 2021. Mainly for the reason that institutions do not hold large amounts of BTC because they are in altcoins that are underperforming in this cycle. Most altcoins against Bitcoin are lower than they were in October 2023, while only a few of them have broken their previous ATH.

Here are the analyst’s top reasons why altcoins have been underperforming against BTC,

• This is a Bitcoin narrative cycle: – the main narrative that propelled BTC to the new ATH is the spot ETF narrative, while altcoins failed to have any catalyst

• Specific narratives overtook the meme, AI and RWA were the leaders, and major industries lagged behind

• The dilution is greater than at the time as nearly 1 million new crypto tokens were created in May

• Tokens are flooding the market as there are almost $200 million worth of tokens unlocked per day and therefore increasing enough selling pressure that it is suppressing the market

Now the question is: will things change? If so, when can we expect the tide to turn?

Considering historical patterns, altcoins peaked exactly 546 days after Bitcoin’s halving and if a similar trend is reciprocal, altcoins could peak in October 2025 or even before that. Despite optimistic scenarios, dilution is an important factor and therefore asset selection is crucial. Therefore, the analyst suggests that it is time to be patient, maintain conviction, and closely monitor the ongoing dynamics of the crypto market.

´Source