Altcoins Experience Four Consecutive Years of Losses Against Bitcoin: What Lies Ahead?

Summary: A recent analysis by Benjamin Cowen, founder of Into The Cryptoverse, reveals that altcoins have underperformed Bitcoin for four consecutive years, marking a significant period of decline in the cryptocurrency sector. This article delves into the factors contributing to this trend, the current market dynamics, and community reactions regarding the future of altcoins.

Key Takeaways

Altcoins have consistently lost value against Bitcoin for four years.
Bitcoin’s dominance in the market remains high at 59.58%.
Despite some short-term gains, altcoins failed to outpace Bitcoin’s overall performance.
The community speculates on a potential rotation and recovery for altcoins in 2026.
Bitcoin is trading at $87,865, with many altcoins down significantly.

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Persistent Underperformance of Altcoins

According to Benjamin Cowen, an analyst and founder of Into The Cryptoverse, altcoins have underperformed Bitcoin for four consecutive years. This situation reflects one of the longest relative bear markets in the cryptocurrency sector. Cowen referenced long-term data showing the TOTAL3 market cap, which tracks all altcoins except Bitcoin and Ethereum, in relation to Bitcoin. Each yearly chart has closed in the red since 2022, confirming that altcoins have consistently diminished in value compared to Bitcoin, even during instances of dollar price rallies.

Benjamin Cowen's chart

USD Gains Masking True Underperformance

Although several altcoins have seen short-term price increases over recent years, these gains have not kept pace with Bitcoin’s performance. Investors holding altcoins have continued to lose relative ground, elucidating why Bitcoin’s dominance has remained high. Currently, Bitcoin dominance is at 59.58%, with its price over $87,000. In the last year, Bitcoin’s dominance has risen by 2.58%, though it has fallen by 16% over the past five years. This trend is also mirrored in the CoinMarketCap Altcoin Season Index, which currently shows a score of 20 out of 100, indicating that Bitcoin has outperformed 80% of the top 100 cryptocurrency assets during the past 90 days.

Community Reactions and Predictions

Cowen’s observations have sparked discussions in the crypto community. Some commenters suggest that this sustained underperformance may pave the way for a future market rotation. For example, a Twitter user named Grabowski Dylan speculated that 2026 might signal a turning point for altcoins. Bitcoin enthusiast Castillo Trading posited that four years of losses could signify the end of a full cycle and that a rebound might be forthcoming. Conversely, critics noted that many assets have historically trended down against Bitcoin over the long term. One Twitter user, Decondejar, remarked, “Everything drops against Bitcoin over the long term.”

community reaction

The Future of Altcoins

Ultimately, Cowen argues that altcoins typically only outperform Bitcoin briefly, usually after Bitcoin has completed a significant rally. As of now, Bitcoin is priced at $87,865, with little movement over recent days. In contrast, well-known altcoins such as PUMP, PENGU, APT, ENA, and ASTER have experienced declines ranging from 60% to 70% in the past three months. Nevertheless, there is speculation about a potential relief rally. Industry figures like Arthur Hayes have begun heavily accumulating DeFi tokens such as LDO, and researchers from Citibank and Bernstein have projected Bitcoin could reach prices of up to $200,000 by 2026, which might aid in the recovery of many altcoins.

Disclaimer: This content is intended for informational purposes only and should not be interpreted as financial advice. The views expressed in this article may represent the author's personal opinions and do not necessarily reflect those of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment choices. The Crypto Basic holds no responsibility for any financial losses incurred.