Why This Bitcoin Bull Market Is Different As Altcoins Lag Behind Bitcoin Price

Crypto firm Matrixport has delivered insights into why this bull market is different from the 2021 bull run. Their analysis sheds more light on why altcoins are lagging

Crypto firm Matrixport has delivered insights into why this bull market is different from the 2021 bull run as it continues to unfold. Their analysis sheds more light on why altcoins are lagging despite the Bitcoin (BTC) price rally to a new all-time high (ATH).

As reported by Matrixport in a recent X post, many traders are missing out on the current Bitcoin price rally as traditional retail engagement indicators remain low despite the rally to a new ATH. The firm explained that this rally is happening thanks to institutional investors, with retail investors on the sidelines in this bull market.

“Perhaps this explains the subdued funding rates, low retail activity and many altcoins lagging as Bitcoin price rallies in this bull market. Retail traders also make the fundamental mistake of not anticipating market corrections, leading them to sometimes close their positions during sharp drawdowns,” Matrixport added.

This bull market also differs from 2021 in that retail’s share of Bitcoin ownership is no longer expanding. Crypto whales have stepped in and are absorbing most of the flagship crypto’s supply, kicking retail investors to the curb. As Bloomberg analyst Eric Balchunas pointed out, this could explain why the Bitcoin price has held up well during major corrections.

According to Matrixport, understanding how corporate demand influences the Bitcoin price behavior and how long this trend is likely to last will be crucial as the shift in this bull market progresses. The absence of retail traders in this cycle explains why funding rates and trading volumes are relatively low, with altcoins lagging.

The firm noted that market participants are witnessing a quiet transfer of Bitcoin from early adopters and investors, miners, and exchanges to corporations like Strategy and institutional investors like BlackRock. Matrixport again asserted that the current Bitcoin price rally is driven by spot market accumulation and not derivatives activity, which could explain why altcoins are lagging behind BTC.

In a separate X post, crypto analyst Kevin Capital stated that the next important step is for the Bitcoin price to record a weekly close above $106,800 and then follow through or consolidate next week.

“BTC is really the only thing that matters. Take your eyes off the altcoins,” the analyst wrote in part.

If the Bitcoin price fails to accomplish that goal, then participants can turn their attention to the reverse psychology 2021 fractals, the analyst added. It is worth mentioning that the analyst predicted that altcoins led by Dogecoin will still have their run once BTC’s dominance cools off in the summer.

At the time of writing, the Bitcoin price is trading at around $108,258, down almost 2% in the last 24 hours, according to data from CoinMarketCap.