PANews reported on March 6th that Matrixport, in its weekly report, analyzed that altcoins remain trapped in mean reversion, and the anticipated altcoin rally over the past year has failed to materialize. In previous cycles, Bitcoin price increases typically led to capital outflows, gradually spreading to the altcoin sector. However, in this cycle, this transmission mechanism has significantly weakened, primarily due to the following reasons.

First, retail investors, a key driver of altcoin demand, have maintained low participation in this cycle. Meanwhile, many crypto projects lack both a compelling new narrative to drive the market and solutions with real-world applications. More importantly, the market continues to face supply pressure from early investors. Continuous token unlocking and liquidity releases generate new selling pressure, making market rebounds more susceptible to supply-side obstacles. As a result, altcoins as a whole remain under pressure, and investor sentiment is generally dampened. However, there are still some individual stocks showing strength, and these opportunities can often be identified through simple market structure signals.