1. Why are Bitcoin and Ethereum outperforming altcoins in 2025?
Bitcoin and Ethereum benefit from stronger liquidity, clearer regulations, and established trust among institutional investors, making them the preferred crypto assets.
2. What are the main factors holding altcoins back?
Altcoins face limited liquidity, unclear regulatory status, weak real-world use cases, and inconsistent investor confidence compared to Bitcoin and Ethereum.
3. Can altcoins catch up with Bitcoin and Ethereum?
Yes, but only if they achieve greater adoption, stronger on-chain activity, and more regulatory clarity that encourages institutional participation.
4. How does regulation affect altcoin performance?
Regulatory uncertainty makes funds and custodians cautious, restricting access to institutional capital that primarily flows into Bitcoin and Ethereum.
5. What could trigger the next altcoin rally?
A decline in Bitcoin dominance, improved liquidity, and visible growth in real-world utility could spark a new wave of interest in altcoins.