ChainCatcher reported that CryptoQuant founder Ki Young Ju said the capital rotation from Bitcoin into altcoins, a pattern that previously helped drive altcoin rallies, has largely disappeared. According to his post, trading volume for altcoins paired with BTC has contracted sharply since 2021, showing that the structure of the market has changed significantly.
His comments focus on how the forces behind altcoin rallies have shifted. In earlier market phases, a common pattern was that Bitcoin would rise first, after which capital would rotate from Bitcoin into altcoins and lift the broader altcoin market. Ki Young Ju’s statement indicates that this rotation is no longer a defining feature of the current market structure.
Ki Young Ju said the era in which “Bitcoin rallies drove broad altcoin gains” may have ended. In his view, future altcoin gains will rely more on each project’s own fundamentals, use cases and independent capital inflows, rather than simply following a broader move sparked by Bitcoin.