In today’s Crypto for Advisors, Gregory Mall, investment director of Lionsoul Global, written on the current Bitcoin rally, and how he has historically and could potentially have an impact on altcoins.
Then, Kevin Tam examines cryptographic trends, 13-F deposits and institutional adoption in Ask A Expert.
– Sarah Morton
Bitcoin’s breakout – Is the Altcoin rally the next one?
On May 22, Bitcoin (BTC) marked a historic moment, reaching a new record of all time, briefly exceeding the levels observed earlier this year. Although prices have consolidated, the BTC remains a striking distance from its summit of all time – a feat obtained despite the persistent macro uncertainties, the weak trading volumes and the general skepticism of the market.
Meanwhile, most altcoins remain far from their peaks of all respective time. At the beginning of June, Ethereum (ETH) is still about 20% below its peak in November 2021, and Solana (soil) is more than 30% below its old summits. This divergence highlights what some market observers call for the “most hated rally” – a silent increase in Bitcoin who has taken a lot of guard.
What led the BTC rally?
Three key factors have contributed to the recent BTC escape:
Central Bank optimism: The term markets suggest that the rate reductions in the federal reserve are probably in the second half of 2025, the euro zone even further, now on its seventh decrease in consecutive rate. This backdrop has rekindled the risk of risks between assets, especially among institutional beneficiaries. With fears of pricing in the rear view mirror, global inflationist perspectives have improved considerably in recent weeks.
Institutional entries: The FNB Bitcoin Spot, approved earlier this year, continue to absorb flows. While the daily volumes have tapered from the summits of the launch week, net entries have always remained positive, in particular from RIA sensitive at the expense and the canals of private wealth. Year to date, cumulative entries exceed $ 16 billion, in May recording the biggest entry this year. At the same time, Microstrategy and other companies continued to stack the assets of the corporate treasury in Bitcoin.
According to political risks: The discoloration of pricing tensions and the improvement of the feeling of global trade have contributed to stabilizing larger markets, allowing risk assets like Bitcoin to resume their upward trend.
Despite these rear winds, the rally occurred on relatively thin volumes.
BTC Dominance Rising – But history rhymes
The domination of Bitcoin – The percentage of the total cryptography market capitalization composed by BTC – has now exceeded 54%, against around 38% at the end of 2022. Historically, the dominance of the BTC culminates before altcoins begin to outperform. During the 2017 and 2021 cycles, Altcoin gatherings delayed the summits of all BTC time from two to six months.
Source: tradingView
If history holds, the rotation of bitcoin in altcoins can already be in progress. Ether’s recent outperformance – displaying an 81% rally from April – is a sign that feeling is starting to spread bitcoin to the Altcoin market.
Altcoin season to come?
Although the term “Altans-season” is often thrown away, there are real indicators that deserve to be watched:
Institutional enlargement: The beneficiaries who have entered the BTC via ETF now assess a wider exhibition. Beta clues of equal or intelligent weight which offer diversified exposure to layers of layer 1, DEFI and infrastructure gain ground.
L1 Innovation and narrative cycles: Layer 1 ecosystems such as Solana, Avalanche, and continue to develop real flow improvements, which are increasingly relevant as requirements for users for chain activities.
Resurgence DEFI: At the beginning of June 2025, the total value locked in the Defi protocols exceeded $ 117 billion, marking a significant recovery in the April crisis. According to Defillama, the total value locked in all DEFI pools has increased by 31% from its April levels.
Risk rotation: In traditional markets, as the Haussier market matures, investors run large caps with small / medium -sized caps. The crypto is no different. Bitcoin can be the starting point, but not the end.
A word of prudence
Although there are significant advantages of diversification associated with crypto investment, it is also fair to say that the crypto still behaves largely as a class of risky assets. As the latest OECD report points out, the world economic landscape is becoming more and more fragile. Increased commercial restrictions, stricter credit conditions, a drop in business and consumers’ confidence and persistent policy uncertainty all weigh on growth prospects and increase the risks of selling speculative assets that includes crypto.
The main dishes to remember for advisers
Expect rotation: If previous cycles are a guide, altcoins can be late for BTC but tend to rally with a delay. Advisers should consider this when rebalancing the portfolios.
Diversification matters: Equal cryptographic baskets or thematic exhibitions (for example, layer 1, DEFI) can help capture upwards without betting on a single asset.
Stay objective: While price action often arouses the interest of customers, the fundamentals – from network activity to the momentum of developers – should remain the northern star for allocation decisions.
The new summit of all time in Bitcoin is certainly an important step. However, it can also be a signal: the next phase of the cycle could belong to the larger cryptographic asset class. The advisers who include the calendar and the mechanics of market rotations are best placed to guide customers through the next leg.
Notice of legal non-responsibility: the information presented, displayed or otherwise provided is for educational purposes only and must not be interpreted as investment, legal or tax advice, or an offer of sale or solicitation of an offer to buy interest in a fund or another investment product. Access to the products and services of Lionsoul Global Advisors is subject to the eligibility conditions and the definitive terms of documents between potential customers and global Lionsoul advisers, as they can be modified from time to time.
– Gregory Mall, Director of Investments, Lionsoul Global
Ask an expert
Q: A year in the trend, how do Canadian banks and pension funds approach bitcoin?
A: This binder 13F of quarters reveals that the Transcanadian capital based in Montreal has made significant investments in digital assets. They manage Air Canada pension assets, as one of the biggest plans for corporate pensions Canada. The pension fund added $ 55 million in ETF Bitcoin Spot.
The institutional adoption of Bitcoin has accelerated in the past year, driven by clearer regulatory directives, the launch of the ETF Spot and the growing recognition of bitcoin as a strategic active. Annex 1 banks in Canada have more than $ 137 million in funds negotiated in exchange for Bitcoin, highlighting increasing institutional demand and long -term positioning.
Q: How could institutional accumulation affect the dynamics of the Bitcoin market?
A: Last year, the ETFs bought around 500,000 bitcoins, while the network produced 164,250 new bitcoins thanks to its work proof consensus. This means that demand ETF alone was three times higher than the newly struck supply. In addition, public and private companies have bought 250,000 bitcoin. While governments plan to include bitcoin in their strategic reserve, other entities explore the addition of bitcoin to their business treasure.
Q: How will the detail access of the Financial Conduct Authority (FCA) be up to tickets (ETN) on the Crypto (ETN) exchanges in the United Kingdom accelerate retail and institutional adoption?
A: This marks an important moment for cryptographic products on the retail market as a class of assets which reflects a broader change in the regulatory position of the United Kingdom to digital assets. This is a complete reversal of a 2020 decision when the FCA prohibited crypto exchange transactions. ETNs must be negotiated on investment scholarships approved by the FCA. The United Kingdom moves its approach to crypto while the government seeks to develop the economy and support a digital asset industry. They send a strong signal to institutional investors that the United Kingdom is positioning itself as a competitor competitor on the world market of cryptography.
– Kevin Tam
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