Bitcoin has reached repeated all-time highs, driven largely by institutional investment. Meanwhile, altcoins lag behind, hampered by token unlocks and stagnant market narratives.
This divergence underscores Bitcoin’s attractiveness over altcoins, where smaller funds struggle to drive sustained momentum.
Institutional Investments Propel Bitcoin to New Heights
10x Research noted in a June 3 report that Bitcoin’s continued rise has been supported by substantial institutional fund inflows. However, altcoins remain stagnant, plagued by issues like token unlocks. The traditional playbook of retail hype and leverage no longer appears effective in the current high-yield bond environment. Despite the allure, the broader crypto market has not experienced the anticipated ‘Alt Season.’
While no official statements were available from 10x Research, VanEck and Standard Chartered’s forecasts bolster the view of substantial future gains for Bitcoin. Mathew Sigel from VanEck perceives a temporary retracement, with a transformational upswing anticipated by year-end. Geoffrey Kendrick of Standard Chartered maintains that ETF inflows could drive Bitcoin to $200,000.
“Following this first peak, we anticipate a 30% retracement in BTC, with altcoins facing sharper declines of up to 60% as the market consolidates during the summer. However, a recovery is likely in the fall, with major tokens regaining momentum and reclaiming previous all-time highs by the end of the year.” — Matthew Sigel, Head of Digital Assets Research, VanEck
Challenges and Projections for Altcoin Performance
Did you know? Previous altcoin cycles thrived on high leverage and hype, which are now sidelined by traditional asset yields, leading to prolonged stagnation in the alt market.
Bitcoin, according to CoinMarketCap, is currently valued at $105,296.02, with a market cap of $2.09 trillion. It holds a 63.14% market dominance. In the past month, Bitcoin’s price rose by 10.34%, indicating growing interest. Despite the recent daily increase of 1.18%, the last week saw a 3.89% decline. However, the quarterly growth showcases a 17.37% positive shift.
10x Research’s analysts and insights from the Coincu team foresee the necessity of a regulated environment to drive continued investment in Blue Chip tokens. Technological advancements and stronger participation signals from retail investors are critical for future altcoin cycles, as the fundamental crypto market dynamics evolve.
