Altcoins: Is Money Still Circulating in a Bear Market?..."Thought everyone gave up, but they're quietly accumulating"

▲ Altcoin/AI-generated image

While Bitcoin (BTC) struggles to break out of its bearish trend, trading volumes for some altcoins are quietly increasing. This signals that although the market has cooled, a rotational cycle has already begun.

According to the crypto media outlet Bitcoinist on May 28 (local time), CryptoQuant analyzed that a different trend is emerging in some altcoins despite a general decrease in market trading volume and deteriorating investor sentiment. The key point is the increase in altcoin exchange trading volumes, excluding Bitcoin, Ethereum (ETH), Solana (SOL), XRP, and BNB.

Bitcoinist reported that over the past few months, sustained selling pressure and uncertainty have left many market participants exhausted or in a wait-and-see mode. Overall crypto trading volume has decreased, and a sideways market coupled with macroeconomic pressures has further weakened investor sentiment. However, altcoin trading volume, excluding the top 5 assets, has actually increased. During this quiet market period, trading has revived in segments characterized by speculative nature and early rotational buying.

CryptoQuant did not view this trend as a simple one-off surge in trading volume. The concentration of altcoin trading at a time when overall market participation is decreasing was interpreted as a signal that some investors are intentionally building positions. Bitcoinist explained that while most investors are skeptical about altcoin season, quiet capital is steadily flowing into the altcoin sector.

However, the altcoin market structure is still weak. The OTHERS/BTC index, which compares the total cryptocurrency market cap (excluding the top 10 assets) to Bitcoin, is showing signs of stabilization after more than two years of underperformance. This index is still moving below the 50-week, 100-week, and 200-week moving averages, indicating that a Bitcoin-centric structure persists.

Bitcoinist noted that the OTHERS/BTC index is forming a long sideways consolidation phase around 0.12. It explained that the sharp decline that dominated 2024 and early 2025 has slowed, and the current range is being repeatedly defended. Historically, major altcoin rotations have undergone a stabilization process before a strong breakout.

For the altcoin rotation to fully materialize, the OTHERS/BTC index needs to reclaim its declining 50-week moving average and establish higher highs. Bitcoinist views the increased trading volume and slowing downtrend as early signs of recovery in the altcoin market. However, as Bitcoin's dominance has not yet been broken, the shift to an altcoin bull market remains in the confirmation stage.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*