Crypto analyst Dennis Liu, who posts as VirtualBacon, says he is the most bullish on altcoins he has been in four years.<\/p>\n
In a video shared on X, he credited a Federal Reserve balance sheet that has grown again since last November for why this cycle could treat them better than the one that ran from October 2023 to October 2025.<\/p>\n
Liu\u2019s first argument<\/a> is that the current Bitcoin cycle remains early, which he considers a favorable time to trade altcoins. His second is the altcoin-to-Bitcoin ratio, measured using TOTAL2 excluding stablecoins and divided by Bitcoin. Liu put that ratio at 0.48, close to a floor around 0.40, and compared it with levels of roughly 0.45-0.46 during the bear market months of April through June.<\/p>\n He argues that altcoins have barely recovered relative to BTC despite Bitcoin\u2019s rebound, leaving them cheaper by that measure. The third factor is entry timing: after a small breakout following Bitcoin\u2019s bottom, altcoins retraced, giving traders a chance to enter after the first move rather than chase it.<\/p>\n Liu\u2019s main argument is macroeconomic. He pointed out the rapid expansion of the Fed balance sheet in 2020-2021 when altcoins outperformed Bitcoin, versus the contraction from October 2023 to October 2025 when they underperformed. The balance sheet, he noted, has been rising again since November 2025.<\/p>\n \u201cThat condition alone, I believe, will be the deciding factor to give us a stronger altcoin cycle in this cycle,\u201d he explained.<\/p>\n Still, he did not forecast a repeat of the 2020-2021 boom. Liu estimated a 50% chance of altcoins moving sideways relative to Bitcoin, a 40% chance of them improving, and a 10% chance of further underperformance. Even a flat ratio, in his view, could produce a better cycle than 2023-2025.<\/p>\n Matthew Hyland, another market analyst, backed the view in a post on X, noting<\/a> that the median altcoin is ahead of Bitcoin year to date in 2026, something that has not happened since 2021. In a separate post, he forecast<\/a> gains of 1,000% to 100,000% and claimed his data places the market where it stood in early 2016 and mid-2020.<\/p>\n Prices have not followed this week. As CryptoPotato<\/em> reported earlier, Bitcoin was rejected<\/a> just under $85,000, and the total crypto market cap lost more than $60 billion from the prior day\u2019s peak. BTC now trades around $82,000, and its dominance over altcoins is over 58% per CoinGecko. The same tracker shows Ethereum near $2,400, down 2% weekly, while Monero stands apart at roughly $613, a seven-day gain of 8%.<\/p>\n The post Why This Analyst Is Bullish on Altcoins Again in 2026<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Crypto analyst Dennis Liu, who posts as VirtualBacon, says he is the most bullish on altcoins he has been in four years. In a video shared on X, he credited a Federal Reserve balance sheet that has grown again since last November for why this cycle could treat them better than the one that ran […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-243192","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/243192"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=243192"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/243192\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=243192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=243192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=243192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Median Altcoin Is Ahead This Year, but Prices Slipped<\/h2>\n