In every past bull run, the market followed a predictable pattern: Bitcoin pumps first, then Altcoins take off. This Altseason was a time when altcoins outperformed BTC, creating massive opportunities for traders. But this time, things look different.
According to Michael Tabone, there’s a clear reason for this – and it’s none other than the introduction of Bitcoin ETFs.
Are Bitcoin ETFs Blocking the Altseason?
Historically, market cycles followed a simple rhythm: Bitcoin made the first move, then capital rotated into altcoins. Many analysts assumed this bull market would behave the same way, leading them to bet big on alts early on.
One prime example? Michaël van de Poppe, a well-known Dutch analyst, who sold all his Bitcoin holdings to go all-in on altcoins. So far, this decision has been, well… a complete disaster.
According to Tabone, Bitcoin ETFs are absorbing liquidity that would have otherwise flowed into altcoins. Unlike Bitcoin, which is now easy to access through ETFs, buying altcoins requires extra steps – and that’s a major problem.
ETF investors aren’t likely to sell their BTC ETF holdings, transfer funds to an exchange, and manually buy alts. This additional friction makes a traditional Altseason much less likely. The easy capital rotation we saw in previous cycles? It’s no longer a given.
Is There a Clear Correlation?
A recent Cointelegraph chart suggests a strong link between the rise of Bitcoin ETFs and the weak performance of altcoins.
But let’s be real: Altcoins still haven’t proven themselves. Unlike Bitcoin, which has a clear use case as a store of value, the “hottest” altcoins right now are memecoins.
In other words, altcoins have yet to establish serious real-world applications – at least nothing with trillion-dollar potential. Bitcoin, on the other hand, does have that potential.
