It’s no secret that Bitcoin’s recent parabolic rally has done little in the way of providing tailwinds for altcoins, with many seeing devastating losses against BTC as their growth stagnates.
This isn’t unprecedented, as past bull runs have followed a similar path, with BTC leading the way and rallying independent of the rest of the market, followed by a capital rotation event that sends altcoins flying as BTC drifts lower or consolidates.
There’s a strong possibility that this will happen again in the future, but it only remains a question of how long Bitcoin will rally and how high it will go before altcoins can gain some momentum.
One venture capitalist believes that the market is nearing the point at which a rotation from BTC and towards altcoins will occur.
He notes that sentiment surrounding Bitcoin can be characterized as no less than “general greed & fomo,” noting that this could be emblematic of a local high.
He also notes that altcoins have been undergoing sheer capitulation as their investors chase after the Bitcoin rally, which typically occurs just before these tokens boom.