Altcoin Rally Unlikely in Current Market
The cryptocurrency market may not see a traditional altcoin season during this cycle, according to Vugar Usi Zade, Chief Operating Officer of Bitget, one of the world’s largest crypto exchanges. Speaking at the Token2049 conference in Singapore, he argued that the conditions that once drove broad altcoin rallies are no longer present.
“I don’t think we will see that huge pump, unfortunately, because there’s no logical reason behind it,” Usi Zade said. “There haven’t been any technological advancements. We haven’t seen any big things coming out of projects. Why would the price go up? Just because now it is the time? It’s not.”
Usi Zade highlighted deeper structural issues in how the altcoin market operates. He argued that the short-term mindset of crypto investors makes it difficult for projects to survive.
Bitcoin Decouples From Altcoins
Historically, altcoins surged alongside Bitcoin (BTC), as traders rotated profits into higher-risk tokens. However, Usi Zade believes that trend is fading.
“Bitcoin is its own rally; its impact is almost zero on the rest of the market,” he noted. “Bitcoin decoupled not only from the stock market, but it also decoupled from altcoins.”
This shift has created scenarios where Bitcoin trades in the green while altcoins remain in decline, highlighting a decoupling in capital flows. Instead of blanket “crypto seasons,” rallies are now more likely to form around specific narratives or sectors, such as real-world assets (RWA) or artificial intelligence tokens.
Challenges for Sustainable Altcoins
“It took Amazon more than 10 years to become profitable, and now we want a crypto venture to do that in eight months,” he said.
Unlike traditional companies, which often benefit from staged venture investment, crypto projects release tokens directly to retail investors. When token prices fall near zero, the project’s credibility and survival become severely compromised.
Bitcoin Becomes the Default Choice
Another major shift Usi Zade observed is the growing tendency for both retail and institutional players to recommend Bitcoin as the sole investment in crypto.
“Now, no one tells you Bitcoin and Ethereum anymore,” he said. “Everyone will tell you just Bitcoin.”
While Ethereum (ETH) remains relatively stable at around $4,372, its growth momentum lags behind Bitcoin’s rally, leaving investors with little incentive to rotate into ETH.
- Bitcoin dominance currently stands at 58%, slightly down from a 12-month peak of 65%.
- Ethereum’s market share has climbed to 12%, recovering from multi-year lows of 7.3% in April, per CoinMarketCap.
- Altcoins remain under pressure, with most traders focusing on Bitcoin as the safest play amid uncertain conditions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.