#Altcoins Update

We have compared Bitcoin and altcoin charts throughout the cycle and discussed how Bitcoin should rotate into altcoins after topping out. However, things are very different now.

In 2017, Tether had a marketcap of around $1B when Bitcoin rotated into altcoins.

In 2021, at the beginning of the year Tether only had a mcap of $20B, and in April 2021 when Bitcoin topped and the alt season peaked, the mcap was around $40B. In April, Circle also had a mcap around $14B making the total mcap of stablecoins around $55B.

Today, Tether has a mcap of $185B while Circle has $75B. Total Stablecoin Marketcap is $315B.

With this information, I think it is a bit stupid to think that the money is going to rotate directly from Bitcoin to altcoins like it used to in 2017 and 2021.

During the crash on October 10th, (TOTAL3-USDT) / BTC didn't go all the way down to 25% - the level Ben Cowen has been expecting throughout the cycle.

HOWEVER it perfectly hit the 25% level on the (TOTAL3-USDT-USDC) / BTC chart. What Ben is missing here is that USDC didn't even exist in 2017 and only had a mcap around $4B in 2021 when that level was hit, while it has a mcap of $75B right now.

In fact, Ben was right, but not on the right chart.

Altcoins also bottomed against ETH in August, and are slowly going up. From this point on in the cycle, altcoins will likely outperform ETH as well - although ETH can outperform them temporarily while it runs for a new ATH.

I didn't talk about any specific numbers or targets here, but the rotation is slowly starting in alignment with the macro : end of QT and likely more liquidity.