A top crypto strategist says money invested in Bitcoin (BTC) is unlikely to rotate into the altcoin market at levels seen in previous cycles for one key reason.
Pseudonymous analyst The Flow Horse tells his 259,500 followers on the social media platform X that many Bitcoin investors who are now contributing to its strong performance are unlikely to move profits into alts.
He says Michael Saylor’s MicroStrategy massive purchases of Bitcoin and those investing in Bitcoin spot exchange-traded funds (ETFs) are major bullish catalysts for the flagship crypto this cycle. However, he believes these entities are not going to rotate their profits into alts.
“The money that bought and is responsible for moving Bitcoin is fragmented away from this market. It’s ETFs and Saylor. Most people here jumped into alts thinking this flow would follow, meanwhile it is on IBKR (electronic trading firm Interactive Brokers) and ThinkorSwim [trading platform]. Market structure has changed, adapt or die.”
He previously said that another reason there won’t be an altseason when altcoins outperform Bitcoin is because there are now more digital assets than prior cycles and not enough liquidity to go around.
“The idea of altseason is just like these rotations that are happening and they’ll get more concentrated. But a rising tide just isn’t happening. It’s just not happening. There’s too much garbage and there’s not enough money to go around to lift it.”
The analyst keeps an eye on the Bitcoin dominance (BTC.D) chart, which currently sits at 59.88%. Traders use BTC.D to track if altcoins are outperforming Bitcoin as the metric calculates how much of the crypto market cap belongs to BTC.
Lastly, the trader suggests that dogwifhat (WIF) may be gearing up for a breakout after a severe correction, dropping below $1.
“To be honest, if there was a place to take a shot at WIF it is probably around here. Study retracements to Binance spot listing prices.”
WIF is trading for $1.18 at time of writing, up 9.9% in the last 24 hours.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
