Analyst Says Altcoin Gains Remain Too Narrow to Signal Broad Rotation

Dennis Liu said the average altcoin has gained about 10% more than Bitcoin (BTC) since BTC’s market bottom, leaving recent token rallies too narrow to indicate a broad market rotation.

Liu pointed to a flat relationship between the combined market value of cryptocurrencies other than Bitcoin and Bitcoin’s market value. He said a handful of strong performers can make the market appear stronger than its wider performance suggests.

Zcash has gained more than 726% over the past year. Venice and Quant have also outperformed more recently. Quant’s 530% jump, from $59 to $370 in a matter of days before settling near $255, was an isolated rally rather than evidence of gains across altcoins as a group.

Liu said Ethereum, Solana and BNB were only slightly ahead of Bitcoin, while XRP had not outperformed it. “We are not confirming a full-on alt season type of scenario yet,” he said. “We are just barely getting started.”

Asked how far away a broad altcoin season was, Liu answered, “nowhere close.”