Matrixport pointed out in their latest weekly report that in this round of the crypto cycle, altcoins overall are still in the mean reversion phase, and the previously anticipated "altseason" has not occurred as expected.
The report states that in past cycles, a rise in Bitcoin usually led to capital spillover, gradually spreading to altcoins. However, in the current cycle, this transmission mechanism has significantly weakened. The analysis suggests that low retail participation is one of the main reasons. Unlike previous bull markets, the incremental funds in this cycle come more from institutional investors, who tend to concentrate on core assets like Bitcoin and Ethereum.
At the same time, most crypto projects lack new narratives or practical applications, making it difficult to attract fresh market funds. More importantly, the market still faces continuous token supply pressure. The unlocking cycles of early investors combined with liquidity releases result in a constant emergence of new sell orders in the market.
Matrixport believes that continuous Token Unlocks have become a significant structural factor suppressing altcoin rebounds, causing price rebounds to quickly encounter obstacles on the supply side.
Despite the overall sector being under pressure, the report notes that there are still local structural opportunities in the market. Some strong assets can often demonstrate signs of momentum through signals such as capital flows, trading structures, or on-chain activity.
