Simply put
- Even though Bitcoin has been relatively stable, altcoins like Bittensor, Zcash, and Pepe have surprisingly risen by double digits in the past week.
- In 2026, five liquidation events eliminated over $1 billion in positions.
- As per CME FedWatch, the PCE data from February 20 will influence the Federal Reserve’s interest rate decisions in March.
We’ve noticed some altcoins making significant gains over the last week, whereas Bitcoin’s volatility seems to be muted and trading within a range.
Bitcoin touched $62,822 on February 6 but then dropped below $71,000, according to CoinGecko. This mix of indecision was worsened by five liquidation events that, well, erased more than $1 billion in positions by 2026. Investors are now looking closely at altcoins for speculative opportunities.
The trend has shifted towards a more selective interest in tokens that have specific narratives instead of a general altcoin season.
Among the top 50 cryptocurrencies by market cap, Zcash is up by 24.1% over the week, followed by Pepe, Bittensor, and Aster, which increased by 21.9%, 19.8%, and 18.5%, respectively.
Lai Yuen, an investment analyst at Fisher 8 Capital, noted there was some risk-on behavior over the weekend, although it quickly lost traction. “After Bitcoin surpassed $70,000 and Solana went over $90, we saw some attempts to rally,” Yuen commented. “Some might have viewed this as a risk-on indicator for a weekend with lower liquidity and sold off their altcoins. Now that the key breakout has failed, I suspect altcoins are gaining some ground again.”
Ignacio, the CMO at BitGet, remarked that better macro sentiment, especially with softer inflation data in the U.S., has sparked a rising risk appetite.
“Capital is gradually moving into high-conviction altcoins buoyed by strong narratives—like ETF speculation and growth areas such as DeFi, AI agents, and gaming,” he explained. “This has helped traders reclaim some confidence after earlier volatility, leading to a short-term rebound and double-digit gains for select tokens.”
Interestingly, each of these altcoins still trades significantly below their all-time highs from previous years.
Zcash, for example, is trading more than 90% below its all-time high of $3,191 from 2016. Pepe and Bittensor are also down by 84% and 75% from their respective peaks set in December 2024 and March 2024.
Even the newly launched Aster decentralized exchange token is roughly 70% below its high from September 2025, highlighting the uphill battle for many altcoins to recover.
Pessimism is quite evident in prediction markets, with users signaling only a 9% chance that an altcoin season might kick off before April 2026.
The story of targeted altcoins
Ryan Yun, a senior analyst at Tiger Research in Seoul, mentioned that while the current altcoin trends are more focused than in past cycles, they still have their narratives. “In 2025, there were broader stories that didn’t yield immediate results, but now institutional-grade sectors like stablecoins and privacy chains seem to be aimed at long-term benefits,” said Yun.
Analysts agree that the strength of the recent altcoin rally relies on sustained favorable macroeconomic conditions, including stable or improving liquidity and positive economic signals from the U.S. in the coming weeks.
“The short-term momentum appears constructive with increased stablecoin inflows, but for a longer-lasting rally, Bitcoin will need to stabilize or increase while its influence gradually lessens,” Ignacio pointed out.
Attention is now on the PCE price index, the Federal Reserve’s preferred inflation measure, set to be released on February 20. This data, along with employment and inflation figures, will be crucial for the interest rate decision expected on March 18.
Currently, the market predicts a 90% likelihood that the federal funds rate will hold steady in the 3.50% to 3.75% range. Various forecasters estimate a 31% possibility that the Fed might cut rates by more than 25 basis points by July.
