Institutional Shift Could End Crypto’s ‘Everything Rally,’ Analyst Warns

The era of all cryptocurrencies rising in tandem — often called the ‘everything rally’ — may be coming to an end, according to a senior analyst at one of South Korea’s largest securities firms. Choi Yoon-young, head of the Digital Asset Research Team at Hanwha Investment & Securities, told the Seoul Economic Daily on May 27 that the market is undergoing a fundamental restructuring driven by institutional adoption.

Bitcoin Takes Center Stage as Market Reorganizes

Choi argued that the digital asset market is reorganizing around Bitcoin, with altcoins moving more selectively and less predictably. In the past, a rising tide of enthusiasm lifted nearly all tokens. That pattern is breaking down. ‘Institutionalization is the biggest change in the digital asset market,’ Choi said. He noted that while the four-year halving cycle was once the dominant narrative, the market is now far more sensitive to macroeconomic conditions and liquidity trends.

Macro Forces Replace Halving Cycles

According to Choi’s analysis, Bitcoin is solidifying its position as an asset class that responds to macro variables such as interest rate decisions and liquidity expansion. This marks a significant shift from its earlier reputation as a purely speculative or niche asset. ‘Bitcoin is becoming an asset sensitive to macro variables like interest rate cuts and liquidity expansion,’ he explained. This evolution aligns with broader trends seen in traditional finance, where institutional players increasingly treat Bitcoin as a macro hedge or portfolio diversifier.

What This Means for Altcoin Investors

For investors holding smaller-cap cryptocurrencies, the implications are significant. The ‘everything rally’ — where even weak projects gained value in a rising market — is unlikely to return. Instead, capital is expected to flow more selectively into altcoins with strong fundamentals, clear use cases, or institutional backing. Projects lacking these attributes may struggle to attract sustained interest.

Conclusion

Choi’s assessment reflects a maturing market where institutional participation is reshaping price dynamics. The shift from a retail-driven, narrative-based market to one influenced by macroeconomic factors and institutional behavior represents a structural change. For readers, the key takeaway is that the crypto market’s future may look less like a lottery and more like a traditional, albeit volatile, financial market.

FAQs

Q1: What is the ‘everything rally’ in crypto?
The ‘everything rally’ refers to periods when nearly all cryptocurrencies, including many altcoins with weak fundamentals, rise in price simultaneously, often driven by broad market enthusiasm or Bitcoin’s upward momentum.

Q2: How does institutionalization affect crypto prices?
Institutional investors tend to focus on Bitcoin and a few select altcoins with strong fundamentals, regulatory clarity, or real-world use cases. This reduces the broad-based speculative buying that previously lifted many smaller tokens.

Q3: Why is the halving cycle becoming less important?
While Bitcoin’s halving historically triggered price rallies due to reduced supply, the market is now more influenced by macroeconomic factors like interest rates, liquidity, and institutional demand, which can override the halving’s effects.