Crypto Market Rally Fueled by Narrative-Driven Rotation

The crypto market has experienced a surge in liquidity over the past few weeks, but closer analysis reveals that this is not a traditional bull market. Instead, it appears to be a narrative-driven rotation where select altcoins are receiving capital inflows while others range or decline.

One of the key indicators of a genuine bull market is a sustained increase in market capitalization, but the current chart shows three distinct phases of range-bound movement since November 2025. Fresh capital enters the market during each phase, but it is directed towards specific altcoins rather than flowing broadly across the market.

Over the past 90 days, capital has been flowing primarily into AI-driven sectors, privacy-focused assets, and TradFi and real-world asset-linked tokens. The Altcoin Season Index remains low, suggesting that the market has not yet reached a point of sustained growth.