Altcoins might be facing a rough patch, according to Glassnode co-founders Jan Happel and Yann Allemann. They’re warning that the recent market correction could spell the end of the altcoin rally that started late last year.
Altcoins Losing Ground to Bitcoin
Happel and Allemann, known as “Negentropic” on X, point to Bitcoin’s rising dominance as a major red flag. Bitcoin dominance, which measures Bitcoin’s share of the total crypto market cap, is climbing, currently hovering around 59%. This means altcoins are losing value faster than Bitcoin. They suggest that unless Bitcoin reclaims a key price point (above $100,000), altcoins will likely continue to underperform. Essentially, investors are playing it safe and sticking with Bitcoin.
Bitcoin’s Shifting Sands
The Glassnode experts also highlight some interesting activity in the Bitcoin market itself. Long-term Bitcoin holders are selling off, while short-term holders are buying up the discounted coins. Whales are quietly accumulating, and miners are staying neutral. This suggests a shift in the market, with new investors absorbing the selling pressure from long-term holders. Currently, Bitcoin is trading around $97,246.
The Bottom Line
The outlook for altcoins is uncertain. While there’s a chance for a rebound if Bitcoin stabilizes above $100,000, the current trend suggests altcoins are lagging behind Bitcoin. Investors should proceed with caution. This is not financial advice; always do your own research before investing in cryptocurrencies.
