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Bitcoin continues to showcase resilience in the current cryptocurrency market cycle, consistently setting new records while many altcoins remain below their previous peaks.
Currently trading just above $104,000, Bitcoin has recently retraced from its all-time high above $111,000, set last month. Contrasting Bitcoin’s consistent growth, Ethereum and other prominent altcoins have yet to surpass historical highs that they reached several years ago, highlighting a notable divergence in market performance.
This divergence has been a focal point among analysts, prompting a deeper examination of investor behavior and capital flows between Bitcoin and altcoins. Recent insights from CryptoQuant analyst Dan suggest that while Bitcoin remains dominant, the situation for altcoins might shift in the upcoming phase of the crypto market cycle.
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Bitcoin Investor Behavior Suggests Potential Shift Ahead
CryptoQuant analyst Crypto Dan recently explored the broader implications of this Bitcoin-dominated cycle in his market commentary. According to Dan’s analysis, previous market cycles typically saw a gradual reduction in mid-to-long-term Bitcoin holdings as investor capital redistributed into altcoins.
This shift traditionally drove altcoins significantly higher, usually marking the late stages of a bullish cycle. However, this cycle exhibits a different pattern.
Frequent minor corrections in Bitcoin’s price are followed by more significant and sharp downturns for altcoins, demonstrating persistent weakness. Crypto Dan notes that currently, very few altcoin investors have realized meaningful profits, an unusual circumstance compared to prior cycles.
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Despite this ongoing difficulty for altcoin holders, the analyst maintains optimism, emphasizing that historical patterns suggest Bitcoin’s dominance typically declines towards the end of each cycle.
If history repeats, altcoins might experience substantial upward movements as the cycle approaches its maturity. Thus, while altcoins currently underperform, investors are advised to maintain patience until Bitcoin’s momentum reaches its final bullish push, potentially signaling a turning point.
Whale Activities Hint at Upcoming Altcoin Attention
Complementing this perspective, another analyst from CryptoQuant, Maartunn, provided insights into stablecoin inflows to major exchanges.
Specifically, Maartunn highlighted that over 75% of Tether (USDT) deposits to Binance, tracked via the TRC-20 network, originated from large wallets, commonly known as whales, since November 2023.
Over 75% of USDT Inflows to Binance Are from Whales
“The data shows a clear trend: whales prefer Binance. Since November 2023, approximately 75% of total USDT deposits to Binance have originated from whale addresses.” – By @JA_Maartun pic.twitter.com/KCBA8cVCdb
— CryptoQuant.com (@cryptoquant_com) June 2, 2025
This substantial concentration of whale activity suggests that major market participants prefer Binance for significant capital movements involving stablecoins.
The notable whale-driven inflows to Binance could indicate preparation for substantial market activity, including potential purchasing of Bitcoin or an eventual shift towards altcoins.
Historically, stablecoin deposits from large holders precede increased volatility and trading activity, as whales position themselves strategically in anticipation of market shifts.
Featured image created with DALL-E, Chart from TradingView