A crypto analyst believes the altcoin market still has plenty of upside left. He points to two key macro indicators that have historically signaled strong altcoin rallies. According to him, global liquidity is rising again. At the same time, the Russell 2000 small-cap index has started outperforming the S&P 500. This is a combination that has appeared before previous altcoin booms.
He explained that the Russell 2000 rarely beats the S&P 500. However, when it does, it usually means liquidity is flowing into riskier assets. He compared this to crypto cycles. In those, investors move from Bitcoin into smaller altcoins once the market becomes more optimistic.
He said this same pattern played out between 2020 and 2021, when both small-cap stocks and altcoins surged.
Liquidity Is the Biggest Signal
The analyst further added that the real driver behind this setup is global liquidity. He noted that central banks, particularly the U.S. Federal Reserve, have started expanding their balance sheets again, creating a more favorable environment for speculative assets.
According to him, this trend has been building since late 2024 and is now being reflected in the Russell 2000’s performance. Furthermore, he stressed that this is the same macro backdrop that has supported previous altcoin rallies.
However, he sees one important trigger is still missing. Bitcoin must first confirm a new uptrend. He said reclaiming the 50-week simple moving average, which is currently around $88,000, would signal the start of a fresh bull market. This would give altcoins a much easier path to outperform.
Two Buying Scenarios for Altcoins
The analyst outlined two situations where he would become aggressive on altcoins.
The first is if Bitcoin falls toward $53,000, creating panic across the market. He believes such a move would produce “fire sale” prices for fundamentally strong altcoins.
The second scenario comes later, once Bitcoin fully confirms its bull trend by reclaiming the 50-week moving average. At that point, he expects to build larger altcoin positions.
Unlike previous cycles, he said he plans to hold altcoins for no more than three months. Rather than treating them as long-term investments, he will take a shorter-term approach.
Altcoins on His Watchlist
Adding to his altcoins pick, he has a firm belief that Bitcoin correction could create some of the best buying opportunities of this cycle. If Bitcoin falls toward $53,000, he plans to accumulate Ethereum, BNB, XRP, Solana, and Hyperliquid. He expects all of them to trade at much cheaper levels. Among these, Hyperliquid (HYPE) is his top pick. He says he would actively buy it if the market sees another sharp sell-off.
He also noted that Ethereum could become especially attractive if it drops to around $1,200–$1,300. Meanwhile, BNB, XRP, and Solana remain strong large-cap projects that could recover quickly once Bitcoin confirms its next bull run.
