Analyst Suggests Altcoin Recovery May Follow Bitcoin’s Final Cycle Stage—Here’s Why

Bitcoin continues to showcase resilience within the present cryptocurrency market cycle, persistently setting new data whereas many altcoins stay beneath their earlier peaks.

At the moment buying and selling simply above $104,000, Bitcoin has lately retraced from its all-time excessive above $111,000, set final month. Contrasting Bitcoin’s constant progress, Ethereum and different distinguished altcoins have but to surpass historic highs that they reached a number of years in the past, highlighting a notable divergence in market efficiency.

This divergence has been a focus amongst analysts, prompting a deeper examination of investor conduct and capital flows between Bitcoin and altcoins. Current insights from CryptoQuant analyst Dan recommend that whereas Bitcoin stays dominant, the scenario for altcoins may shift within the upcoming part of the crypto market cycle.

Associated Studying

Bitcoin Investor Habits Suggests Potential Shift Forward

CryptoQuant analyst Crypto Dan lately explored the broader implications of this Bitcoin-dominated cycle in his market commentary. In line with Dan’s evaluation, earlier market cycles sometimes noticed a gradual discount in mid-to-long-term Bitcoin holdings as investor capital redistributed into altcoins.

This shift historically drove altcoins considerably greater, often marking the late levels of a bullish cycle. Nevertheless, this cycle reveals a special sample.

Frequent minor corrections in Bitcoin’s value are adopted by extra vital and sharp downturns for altcoins, demonstrating persistent weak spot. Crypto Dan notes that presently, only a few altcoin buyers have realized significant income, an uncommon circumstance in comparison with prior cycles.

Associated Studying

Regardless of this ongoing problem for altcoin holders, the analyst maintains optimism, emphasizing that historic patterns recommend Bitcoin’s dominance sometimes declines in direction of the top of every cycle.

If historical past repeats, altcoins may expertise substantial upward actions because the cycle approaches its maturity. Thus, whereas altcoins presently underperform, buyers are suggested to keep up persistence till Bitcoin’s momentum reaches its closing bullish push, probably signaling a turning level.

Whale Actions Trace at Upcoming Altcoin Consideration

Complementing this angle, one other analyst from CryptoQuant, Maartunn, offered insights into stablecoin inflows to main exchanges.

Particularly, Maartunn highlighted that over 75% of Tether (USDT) deposits to Binance, tracked through the TRC-20 community, originated from giant wallets, generally referred to as whales, since November 2023.

Over 75% of USDT Inflows to Binance Are from Whales

“The information exhibits a transparent development: whales want Binance. Since November 2023, roughly 75% of whole USDT deposits to Binance have originated from whale addresses.” – By @JA_Maartun pic.twitter.com/KCBA8cVCdb

— CryptoQuant.com (@cryptoquant_com) June 2, 2025

This substantial focus of whale exercise means that main market individuals want Binance for vital capital actions involving stablecoins.

The notable whale-driven inflows to Binance may point out preparation for substantial market exercise, together with potential buying of Bitcoin or an eventual shift in direction of altcoins.

Traditionally, stablecoin deposits from giant holders precede elevated volatility and buying and selling exercise, as whales place themselves strategically in anticipation of market shifts.

Featured picture created with DALL-E, Chart from TradingView