Crypto Traders Rotate Into Select Altcoins as Bitcoin Stalls
Several altcoins have experienced double-digit gains over the past week, while Bitcoin has remained range-bound below $71,000 since February 6. Recent market indecision and significant liquidations have shifted traders’ focus to selected altcoins with strong narratives, rather than triggering a broad "altseason." Notable performers among the top 50 cryptocurrencies include Zcash (+24.1%), Pepe (+21.9%), Bittensor (+19.8%), and Aster (+18.5%). Despite these rallies, all remain far below their all-time highs, highlighting how much ground they have yet to recover. Investors have selectively rotated into tokens associated with themes like ETFs, DeFi, AI, and gaming, driven by improving macro sentiment and softer U.S. inflation data. However, analysts note that altcoin gains may be short-lived if Bitcoin does not achieve a sustained breakout. The outlook for further rallies depends on favorable macroeconomic conditions, particularly upcoming U.S. inflation and interest rate decisions. Prediction markets currently see limited chances for a broad altcoin season or significant Fed rate cuts before mid-2026.
