The first quarter of 2025 was dominated by talks of the altcoin season, as is normally the case when the bull cycle is ending. In previous cycles, capital tends to rotate from Bitcoin to different cryptocurrencies as traders search for most achieve earlier than the arrival of the bear market.
However, the story has been very totally different for the cryptocurrency market to this point this yr, with most large-cap belongings failing to take pleasure in the identical capital rotation seen in previous cycles. The newest on-chain knowledge exhibits that Bitcoin has continued to dominate the crypto market, outperforming all classes of altcoins.
Is It Time To Buy Altcoins?
In an April 5 put up on the X platform, pseudonymous analyst Darkfost shared an attention-grabbing on-chain perception into the efficiency of all altcoin classes relative to the world’s largest cryptocurrency. According to the net pundit, the altcoins are underperforming in comparison with Bitcoin by way of market capitalization progress.
In their put up, Darkfost in contrast the market cap progress of Bitcoin, large-cap altcoins (the highest 20 largest altcoins), and mid-to-small cap altcoins by calculating the distinction between their 365-day and the 30-day transferring common (MAs). According to the analyst, the variation between the 365-day MA and the 30-day MA serves as an indicator of progress momentum.
Typically, when the short-term transferring common (30-day MA) rises sooner than the long-term transferring common (365-day MA), it implies fast market cap growth. On the flip aspect, a decreased progress momentum is indicated by a lagging 30-day transferring common.
Source: @Darkfost_Coc on XAs noticed within the chart above, Bitcoin is outpacing the large-cap and mid-to-small-cap altcoins by way of their market cap progress. Darkfost famous that this distinction within the progress ratio has reached a stage final seen in October 2023, a interval correlated with a quick altcoin rally and subsequently BTC’s dominance.
The analyst additional highlighted that when this progress ratio turns destructive, it usually alerts {that a} sturdy correction has occurred. Historically, a destructive ratio would possibly current a potential buying opportunity for traders seeking to get into the market.
Bitcoin And Ethereum Price Quick Look
As of this writing, the worth of BTC stands at round $83,500, reflecting no vital motion prior to now 24 hours. At the identical time, the ETH token is valued at round $1,805, with no change prior to now day.
While the premier cryptocurrency dropped by about 15% within the first quarter of 2025, Ethereum misplaced virtually double its worth in the identical interval. This hole in efficiency underscores how woeful the “king of altcoins” has been prior to now few months.
The worth of BTC on the day by day timeframe | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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