Why This Analyst Is Bullish on Altcoins Again in 2026

The analyst puts the odds of altcoins beating Bitcoin this cycle at about 40%, sideways trading at 50% and a break below the floor at 10%. 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 from October 2023 to October 2025. Altcoins Still Sit Near Their Floor Against Bitcoin Liu’s first argument 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. He argues that altcoins have barely recovered relative to BTC despite Bitcoin’s rebound, leaving them cheaper by that measure. The third factor is entry timing: after a small breakout following Bitcoin’s bottom, altcoins retraced, giving traders a chance to enter after the first mo...