- Bitcoin is holding strong near $96K as long-term holders continue accumulating, supported by U.S. political momentum and institutional interest.
- Meanwhile, a $1.04T recovery in TOTAL2 hints at a potential altcoin rotation, though meme coin hype may delay a full altseason breakout.
Bitcoin Strength Sparks Altcoin Optimism
Bitcoin is holding firm near the $96,000 mark in early May 2025, showing resilience as long-term holders continue to accumulate — even at these elevated price levels. This stability, combined with a recovery in the TOTAL2 crypto market cap (excluding Bitcoin) to $1.04 trillion, suggests a brewing altcoin rotation may already be underway.
Driving bullish sentiment further, U.S. Senator Cynthia Lummis recently revealed that former President Donald Trump supports her proposed “BITCOIN Act” — a plan for the U.S. to acquire 1 million BTC over five years. If passed, this would make the United States one of the largest institutional holders of Bitcoin, reinforcing confidence among investors and institutions alike.
TOTAL2 Recovery Hints at Altseason, But Meme Hype Clouds the Picture
Technical indicators from the TOTAL2 chart highlight mixed signals for altcoins. The recent reclaim of $1.04T is an encouraging sign. Should this breakout hold, Fibonacci extension levels suggest possible targets at $1.12T, $1.18T, and even $1.26T — each a potential resistance where traders may lock in profits.
However, market analytics firm Santiment warns that the rising excitement might not be evenly distributed. Social media chatter is increasingly dominated by meme coins, distracting from utility-based projects. This speculative frenzy may limit gains for fundamentally strong altcoins in the near term.
Glassnode: Long-Term Holders Still Buying Near $96K
Glassnode’s on-chain data shows that long-term Bitcoin holders (LTHs) remain confident, continuing to accumulate above $95K. Historically, significant selling pressure has emerged near $99.9K — which could pose resistance. A decisive breakout above this level may unlock the next major milestone: Bitcoin price discovery above $100,000.
Altcoin Rotation or Meme Coin Distraction?
With BTC steady and the TOTAL2 market cap recovering, May could become a pivotal month for altcoins. If the $1.04T level holds and broader sentiment shifts toward utility-driven assets, we may be on the cusp of a true altseason. But with meme coins still stealing the spotlight, investors should tread carefully — the market’s next move may be less predictable than it seems.
