The cryptocurrency market is experiencing a shift in liquidity, with capital increasingly concentrating on top assets as broad altcoin rallies lose momentum. According to CoinEx analyst Jeff Ko, retail traders may face disappointment as funds flow towards projects with tangible usage, leaving smaller tokens unlikely to reach previous rally levels.
Bitcoin's correlation with M2 money supply growth has diminished since the 2024 ETF launch, and the cryptocurrency has seen a significant decline, dropping over 22% in the fourth quarter, marking one of its worst quarters on record. Trader Peter Brandt anticipates a substantial drawdown before Bitcoin reaches its next peak, potentially in 2029.
Crypto Market Liquidity Concentrates on Top Assets as Altcoin Rallies Fade
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