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Altcoin-Bitcoin Correlation Hits New Highs in Bull Cycle: CryptoQuant Data Reveals Trend

coinedition.com

22 hour ago

Altcoin-Bitcoin Correlation Hits New Highs in Bull Cycle: CryptoQuant Data Reveals Trend

According to new data shared on May 21, 2025, altcoins, including TRX, ADA, SUI, and XLM, are showing increased statistical correlation with Bitcoin’s price movement. As the current bull cycle picks up steam, this tighter alignment suggests Bitcoin’s performance is still the main force guiding the wider crypto market. In fact, correlation values topping 0.90 for several of these tokens point to more synchronization in how investors are acting and how assets are priced. A heat map put out by CryptoQuant lays out the year-by-year correlation scores between Bitcoin and various altcoins from 2021 through 2025. The latest numbers clearly show this growing correlation during the current bull market. As of May 2025, SUI’s correlation value hit 0.93, while both ADA and XLM reached 0.91. XRP, TRX, HBAR, and LTC all posted correlation values above 0.88. Source: CryptoQuant This CryptoQuant heat map uses a green-to-white gradient where darker green means a stronger positive link with Bitcoin. The notable bunching of dark green in the 2025 section of the heat map shows this stronger alignment across these crypto assets, a pattern often seen during extended bullish periods. Related: Altcoin Season Is Clearly “Loading”: Key Indicator Has Flipped Big Bullish Green TRX Correlation Stays High as Tether (USDT) on Tron Sees Growth in Asia Among these closely linked altcoins, Tron (TRX) has shown a consistently high correlation, backed by more use in certain regions and more happening on its network. In recent months, the amount of Tether (USDT) issued on the Tron network has actually surpassed the total on Ethereum, marking a big shift in stablecoin distribution. This trend highlights increased transactional activity on the Tron blockchain, particularly in Asia, where its usage has reportedly climbed. This shift in network-level metrics suggests that TRX’s correlation with Bitcoin isn’t just about market sentiment but also reflects its growing real-world utility. Still, how TRX behaves in the market remains closely tied to Bitcoin’s overall price path, as its correlation coefficient of over 0.88 confirms. Some Altcoins Don’t Follow The Pack: TON, STX, KAS Show Low Bitcoin Correlation While many major altcoins are moving tightly with Bitcoin, a few outliers remain. The same CryptoQuant data shows that assets like TON (with a correlation coefficient of -0.49), STX (0.37), and KAS (0.32) display much lower, or in TON’s case, even negative correlation coefficients with Bitcoin. Related: Bitcoin Could Be Next After Gold’s Breakout as Altcoin Season Nears CryptoQuant’s data also points to a historical pattern: these correlations usually weaken when the market is bearish and get stronger during bull runs. The current high correlation levels fit this pattern, supporting the idea that the broader market sentiment is currently taking its main cues from Bitcoin’s performance in the crypto market. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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