Why Altcoins Are Taking a Backseat This Year

Bitcoin has been on a roll, hitting a new high near $126, 000 in early October. But guess who's not joining the party? Altcoins. They're still playing catch-up, stuck below their 2021 peak of around $1. 6 trillion. This is a big deal because, in the past, altcoins usually hit new highs right after Bitcoin. Not this time, though. So, what's going on? Well, a few things are at play. First, there's a lot of money flowing into Bitcoin through ETFs. This is a good sign for Bitcoin, but it's not doing much for altcoins. Second, there's some uncertainty around U. S. trade policies and what the Federal Reserve might do next. This is making investors a bit nervous, and they're not taking big risks on altcoins. Lastly, there's a squeeze on dollar funding, which is making it harder for people to invest in riskier assets like altcoins. Now, let's talk about what might happen next. There are a few scenarios. One is that Bitcoin has already hit its peak, and we're seeing a pullback. Another is that Bitcoin could go a bit higher, maybe up to $155, 000, before it starts to fall. The third scenario is that we're in a bit of a waiting game, with Bitcoin trading between $100, 000 and $125, 000 for a while.But what about altcoins? Well, they're still waiting for their moment. In the past, altcoins usually took off after Bitcoin. But this time, they're not getting the same love. This could be because all the ETF money is going into Bitcoin, or it could be because of the uncertain macro environment. Either way, until altcoins break their 2021 high, they're not really in the game. One interesting thing to note is that if you include stablecoins in the mix, the total market cap did break its 2021 high. But this isn't necessarily a good sign for altcoins. In fact, a lot of stablecoins just sitting there can mean people are moving out of riskier assets, not into them. So, what's the takeaway? Well, it's a bit of a waiting game. Bitcoin is doing its thing, but altcoins are still on the sidelines. Until we see some clear signs of a change, it's hard to say what's next. But one thing's for sure: it's not your typical altcoin season.