After a brief surge in mid-2023, altcoins have struggled to sustain meaningful momentum. While early rallies sparked optimism, Bitcoin’s increasing dominance–especially after the launch of its spot ETF in January 2024–has kept altcoin growth subdued. As of May 2025, analysts advise caution, noting that altcoins are yet to show convincing strength amid a market environment still driven largely by Bitcoin.

Bitcoin’s Momentum Overshadows Altcoin Activity

During the second half of 2023, major altcoins gained alongside the rising OTHERS.D index, marking a strong performance window. But that momentum waned quickly once Bitcoin’s ETF-driven rally took center stage. Temporary spikes, such as those following political events, failed to produce lasting altcoin traction. Instead, Bitcoin has maintained dominance for over a year, effectively stalling broader market diversification.

Conditions for a Potential Altcoin Revival

A sustained altcoin recovery hinges on clear technical structures–higher highs and consistent support–forming across key tokens. Traders may find opportunities when individual alts exhibit persistent relative strength, but early entry carries risk. Analysts stress the importance of confirmation signals: without them, transitions away from Bitcoin could result in missed gains or outright losses.

Currently, data does not support the idea of altcoins outperforming Bitcoin, and the market’s direction remains closely tied to BTC’s behavior.

Fed Policy Adds to Market Uncertainty

Further complicating the outlook is the upcoming Federal Reserve meeting. While most expect interest rates to remain unchanged, any surprise rate cut could shake market expectations and influence both Bitcoin and altcoins. Macro uncertainty remains a wildcard–one that investors must factor in before shifting capital into underperforming sectors.

For now, the crypto market remains Bitcoin-centric. Until clear evidence of altcoin momentum emerges, patience and risk management will be key for traders looking to re-enter the altcoin space.

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