The cryptocurrency market has recently experienced a rollercoaster of events, with the much-discussed 'Altseason' in May lasting a mere three weeks, as highlighted by industry observer Cas Abbe on social media. Despite significant macroeconomic catalysts like the US-China trade resolution and growth in M2 money supply, which typically fuel bullish sentiment in risk assets, the altcoin market has failed to sustain momentum. Bitcoin (BTC) achieved a new all-time high (ATH) of $73,800 on November 5, 2024, according to data from CoinGecko, and BTC dominance peaked at 58.3% on the same date, as reported by TradingView. However, the broader altcoin market, represented by the OTHERS/BTC index, hit a new cycle low on November 7, 2024, at 0.000012, signaling severe underperformance. This comes even as global stock markets, such as the S&P 500, rallied by 2.1% in the week ending November 6, 2024, per Yahoo Finance, reflecting optimism around trade resolutions. For crypto traders, this disconnect between macro events, Bitcoin's strength, and altcoin weakness presents a critical juncture. The question remains: why are altcoins lagging despite favorable conditions, and what does this mean for cross-market trading strategies?

From a trading perspective, the failure of altcoins to capitalize on Bitcoin's ATH and macro tailwinds suggests a persistent risk-off sentiment within the crypto market. BTC's dominance peaking at 58.3% on November 5, 2024, indicates capital rotation away from altcoins, likely driven by institutional investors favoring Bitcoin as a safer bet amid geopolitical and economic uncertainty. This is further evidenced by Bitcoin's trading volume spiking to $48 billion on November 5, 2024, compared to Ethereum (ETH) at just $18 billion on the same day, per CoinMarketCap data. Meanwhile, major altcoins like ETH/BTC dropped to 0.035 on November 7, 2024, a 6-month low, while XRP/BTC fell to 0.0000072, reflecting a 4.5% decline in the past week. For traders, this presents opportunities in shorting altcoin pairs against BTC or focusing on Bitcoin-centric strategies until consolidation above $73,800 is confirmed. Additionally, the stock market's bullish momentum, with the Nasdaq up 3.2% for the week ending November 6, 2024, as per Bloomberg, hasn't translated into altcoin gains, suggesting limited institutional money flow from equities to smaller crypto assets. This divergence highlights the need for cautious position sizing in altcoins.

Diving into technical indicators, Bitcoin's Relative Strength Index (RSI) on the daily chart stood at 68 on November 7, 2024, nearing overbought territory but not yet signaling a reversal, according to TradingView. Meanwhile, the OTHERS/BTC index shows a bearish divergence, with declining volume of just 12% of Bitcoin's on November 7, 2024, per CoinGecko, indicating waning interest in altcoins. On-chain metrics further support this, with Bitcoin's active addresses increasing by 8% to 1.2 million on November 6, 2024, while Ethereum's remained flat at 450,000, as reported by Glassnode. Cross-market correlations also reveal insights: Bitcoin's correlation with the S&P 500 rose to 0.62 on November 7, 2024, per IntoTheBlock data, showing stronger alignment with equities than altcoins, whose correlation with stocks dropped to 0.38. This suggests that while Bitcoin benefits from stock market optimism, altcoins are decoupled, potentially due to lower liquidity and retail-driven volatility. For institutional investors, this reinforces Bitcoin's role as a hedge, with inflows into Bitcoin ETFs reaching $1.2 billion in the week ending November 6, 2024, according to CoinShares, while altcoin funds saw outflows of $85 million. Traders should monitor BTC dominance and stock market trends closely, as a sustained S&P 500 rally could eventually spill over into crypto if risk appetite broadens.

In summary, the interplay between stock market strength and crypto dynamics underscores Bitcoin's dominance in the current cycle. With altcoins underperforming despite macro positives, trading strategies should prioritize BTC pairs and avoid overexposure to smaller tokens until clear consolidation signals emerge. Institutional flows remain skewed toward Bitcoin and equities, leaving altcoins in a precarious spot for now. Monitoring cross-market correlations and on-chain data will be key to identifying the next shift in sentiment.