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Over the past two months, Bitcoin trading volumes have outstripped those of altcoins. This was reported by analysts from the on-chain platform CryptoQuant.
According to their assessment, the current scenario aligns with a classic pre-growth phase: some participants are exiting the market, and capital is being redistributed from altcoins to Bitcoin.
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Such periods are often marked by increased pessimism. The 60-day Bitcoin dominance metric in transaction volume indicates a decline in speculative positions.
Historically, during such times, long-term investors become more active, beginning to accumulate positions. If the current trend persists, analysts anticipate a rise in Bitcoin during the second and third quarters.
However, it is premature to declare a complete market reversal. The cryptocurrency market remains sensitive to policy changes, which sustains a high level of uncertainty. The current phase is viewed by CryptoQuant as a stage of exiting a prolonged bearish cycle.
Previously, Benjamin Cowen, the founder of Into the Cryptoverse, stated that despite the rising prices of major altcoins, liquidity typically concentrates in Bitcoin during the later stages of the market cycle.
