According to ChainCatcher, CryptoQuant founder Ki Young Ju said in a post that the capital rotation from Bitcoin into altcoins, which once helped drive altcoin rallies, has largely disappeared. He noted that since 2021, trading volume in altcoins quoted against BTC has contracted significantly, indicating that the structure of the crypto market has changed in a clear way.
Ki Young Ju’s comments center on the changing source of momentum behind altcoin gains. In earlier market phases, Bitcoin’s rise was often followed by capital moving from BTC into altcoins, creating broad-based altcoin rallies. In his view, the era in which “Bitcoin rises and altcoins rise together” may have ended.
Based on his statement, altcoins in the future may rely more on their own fundamentals, use cases, and independent capital inflows to support price increases. This suggests that the relationship between altcoin performance and Bitcoin’s movement is no longer the same as in the period when BTC-paired capital rotation played a more dominant role.