While most investors remain focused on Bitcoin, one crypto analyst explained that the better opportunity may now lie in altcoins. In his latest market analysis, he revealed that he has been selling some of his Bitcoin holdings to buy altcoins, arguing that the market is entering a phase where quality altcoins could outperform the world’s largest cryptocurrency.
Why He’s Rotating Into Altcoins
The analyst says Bitcoin has been one of crypto’s strongest performers since the 2022 bear market, rising roughly 300% from its lows before correcting around 50% from its recent peak. Most altcoins, however, never enjoyed the same rally.
Looking at projects like Internet Computer (ICP), Render, Uniswap, Worldcoin, Grass, Solana, XRP, Cardano, and Avalanche, he notes that many actually peaked in 2024 or early 2025, well before Bitcoin reached its All-time-high. Most of them then formed lower highs while Bitcoin continued climbing.
To him, that suggests altcoins have been following a different cycle altogether rather than simply tracking Bitcoin.
Macro Trends Tell a Different Story
Instead of focusing only on Bitcoin, the analyst advises the investors should watch broader economic indicators, particularly the ISM Manufacturing Index.
When manufacturing expands, businesses grow, consumers spend more, and investors become more willing to take risks. Historically, those periods have coincided with strong crypto bull markets.
He noted that the previous cycles in 2017 and 2021 closely followed improvements in the ISM index. Bitcoin broke away from that relationship between 2022 and 2025 due to unique catalysts like spot ETFs and growing institutional adoption, but most altcoins continued following macroeconomic conditions.
Now, with the ISM moving back above 50, easing inflation, lower oil prices, improving productivity from AI, and expectations for future interest rate cuts, according to him, the current environment is becoming increasingly supportive for altcoins.
Bitcoin May Be Near Its Bottom
Although he’s becoming more bullish on altcoins, the analyst also sees encouraging signs for Bitcoin.
He sees a bullish divergence on Bitcoin’s RSI, where price made a lower low while momentum strengthened. He also points to on-chain data showing short-term holders are sitting on heavy losses, a pattern that has historically appeared near major market bottoms as weaker investors exit.
Another indicator tracking the number of days Bitcoin holders have remained in profit is also flashing levels previously seen during past cycle lows.
Taken together, he said Bitcoin is either already at its bottom or very close to one.
The Altcoins He’s Watching
Rather than chasing hype, the analyst prefers projects with strong revenue, active users, and healthy treasuries.
He pointed to the Aerodrome on Base and Jupiter on Solana as examples of decentralized exchanges generating real protocol revenue. He also encouraged investors to monitor platforms like Token Terminal and DefiLlama to identify projects with sustainable cash flow and growing ecosystems.
While he still expects large-cap assets like Ethereum, Solana, XRP, Cardano, and Stellar to perform well, he believes carefully selected mid-cap projects with solid fundamentals could deliver the strongest gains if the next altcoin cycle unfolds.
Was this writing helpful?
Story Ends Here
Trust with CoinPedia:
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Read the Next News
