A Positive Dynamic & Shift For Altcoins

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4 Jan 2026

Wealth Creation
Historically, altcoins have been pivotal regarding wealth creation within the Crypto space. Altcoin investing has always been risky. However, not as dangerous as it is today. As I have mentioned, many altcoins are trading below their bear market low valuations. The previous bear market was in 2022. This is a long time for investors to be sitting in the red. That being said, smart investors had the opportunity to exit the market in 2024.
The truth, however, is that the majority of investors were expecting Altcoin Season to strike in 2025. The sad reality is that it didn’t, and 2024 marked the year of the local top for altcoins. However, with the 4-year cycle being toast, 2026 could be a better year for altcoins. Bitcoin had a fairly decent 2025. However, not as lucrative as many had hoped.
Relatively speaking, 2025 was a disappointment that left many altcoin and micro-cap investors with their heads in their hands. However, Bitcoin’s success in 2024 and 2025 has positive implications for altcoins. Remember, Bitcoin bottomed at $15.8K in September 2022. The previous all-time high was $69K, which provided plenty of upside potential.
A Helping Hand From Bitcoin
The higher Bitcoin goes, the more difficult it becomes to earn hundreds of percent. In other words, investors will eventually begin looking more seriously at altcoins again. If Bitcoin rallies 100% from here, it will be valued at $180K. That’s not much of a return for such a big move. Crypto investors will eventually begin looking at ETH and other digital assets as a favorable alternative.
This dynamic forces investors to look elsewhere. The days of Bitcoin rallying by 700% in a single cycle are over, unless it continues to experience deep corrections. This, however, is unlikely thanks to BlackRock, Saylor, and countless others. Essentially, once Bitcoin surpasses $200K, quality altcoins are likely to benefit. However, don’t expect the entire market to lift.
The ‘Altcoin Filtering’ has begun. The amalgamation of TradFi and Crypto (DeFi) will result in a thorough sifting. Many altcoins will suffer extinction. However, many projects will also rise in prominence and market cap. Essentially, the heavier Bitcoin becomes, the more difficult it becomes to extract gains.
This dynamic is favorable for altcoins, especially for the hidden gems in obscurity. One of the positive aspects of a suppressed altcoin market is that it doesn’t show partiality. Everything goes down, providing excellent buying opportunities. In other words, both good and bad suffer devaluation, not only the useless projects.

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Final Thoughts
Eventually, BTCD will drop, and gains will be rotated into altcoins. This will occur in both the short term and the longer term, creating an excellent opportunity for quality projects to rally and move up the market cap ladder. These are merely my thoughts and should not be considered investment advice. All the best, see you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in my receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.