Here’s why Altcoins have underperformed versus Bitcoin and Altseason may not even be close

After a brief recovery, the the markets have started to consolidate again. While Bitcoin price With drops below $68,000, most altcoins also fell below provisional support. This raises concerns about whether altcoins are gearing up for a huge run or are simply closely following the BTC price rally.

A famous analyst, Miles Deutscher, shared a post and said that altcoins are nowhere near a bull run. The analyst shed light on the market data and said that the markets are not in a euphoric phase like in 2021. Mainly due to the fact that institutions are not holding large amounts of BTC as they are in altcoins which are underperforming in this cycle. Most altcoins against Bitcoin are lower than in October 2023, while only a few of them have surpassed their all-time high.

Here are the main reasons, according to the analyst, why altcoins have underperformed compared to BTC,

• This is a Bitcoin narrative cycle: – the main narrative that pushed BTC to the new ATH is the ETF spot narrative, while altcoins failed to have any catalyst

• Specific narratives outperformed the meme, AI and RWA were the leaders, and major sectors lagged

• Dilution is higher than at the time, as nearly 1 million new crypto tokens were created in May

• Tokens are pouring into the market as nearly $200 million worth of tokens are unlocked every day and thus increasing selling pressure is suppressing the market

Now the question is: will things change? If so, when can we expect the tide to turn?

Considering historical patterns, altcoins peaked exactly 546 days after Bitcoin halving and if a similar trend repeats, altcoins could peak in October 2025 or even earlier. Despite the bullish scenarios, dilution is an important factor and therefore asset selection is crucial. Therefore, the analyst suggests that it is time to be patient, maintain conviction and closely monitor the ongoing dynamics of the cryptocurrency market.

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