Matrixport: In this cycle, the mechanism by which bitcoin gains are transmitted to altcoins has significantly weakened

Foresight News reported that Matrixport tweeted, "Over the past year, the anticipated altcoin rally in the market has failed to materialize as expected. In previous cycles, bitcoin's rise would usually lead to capital spillover, gradually transmitting to the altcoin sector. However, in this cycle, this transmission mechanism has significantly weakened, mainly due to the following reasons.

First, retail investors, who are an important driving force behind altcoin demand, have shown relatively low participation in this cycle. At the same time, many crypto projects lack new narratives strong enough to drive the market and have failed to provide solutions with real-world application value. More critically, the market still faces continuous supply pressure from early investors. Ongoing token unlocks and liquidity releases continually bring new selling pressure, making market rebounds more likely to be blocked on the supply side. As a result, altcoins as a whole remain under sustained pressure, and investor sentiment is generally frustrated. However, there are still some segments in the market showing relative strength, and such opportunities can often be identified through some simple market structure signals."