Bitcoin Slips as Altcoins Rally Back, Cardano Sees Major Liquidity Inflow

▲ Solana (SOL), Ethereum (ETH), Cardano (ADA) / ChatGPT-generated image

The altcoin market has passed through a historic oversold zone and now stands on the verge of a massive bull cycle that could outperform Bitcoin, with Cardano signaling the beginning of a counterattack alongside large-scale stablecoin inflows.

On February 27, cryptocurrency analyst Dan Gambardello stated in a video uploaded to his YouTube channel that an indicator measuring the relative value of the altcoin market compared to Bitcoin (BTC) has reached its lowest level in years. Gambardello explained that while the market is currently experiencing short-term volatility triggered by war concerns and higher-than-expected PPI data, from a broader macroeconomic perspective it is in a phase of compressed energy ahead of an explosive upward move. In particular, he analyzed that the Chicago PMI, a leading indicator for manufacturing data, recorded 57.7—its highest level in three years—signaling strong potential for a rebound in the digital asset market amid economic expansion.

An analysis combining the total altcoin market capitalization chart excluding Bitcoin with manufacturing indicators suggests the market has entered its most attractive buying zone since 2014. Gambardello emphasized the historical correlation in which the cryptocurrency market entered major bull cycles whenever PMI data moved above 50 into expansion territory. He projected that the altcoin market is currently significantly undervalued relative to Bitcoin, and once the macroeconomic environment shifts from a defensive stance to a risk-on preference, an altseason could emerge in which altcoin returns surpass those of Bitcoin.

Cardano (ADA) is facing a critical turning point in securing network liquidity. Through a partnership with Circle, the issuance of USDCx—a privacy-enhanced stablecoin—has begun in earnest, with 10.1 million USDCx minted in just the past hour. Gambardello assessed that such substantial capital inflows will serve as tangible fuel driving growth within the Cardano ecosystem. He also noted that Cardano’s weekly moving average convergence divergence (MACD) and relative strength index (RSI) are compressing at levels similar to the 2022 bottom, indicating that the likelihood of a technical rebound is higher than ever.

In 2026, massive liquidity is expected to flow into the market as economic stimulus measures under U.S. President Donald Trump’s administration coincide with pressure for interest rate cuts. President Trump favors lower rates to ease debt repayment burdens, a stance that could act as a strong tailwind for liquidity-sensitive assets such as cryptocurrencies. Gambardello explained that current stagflation concerns could instead serve as a catalyst for policy easing and capital injections, and that even if the market temporarily contracts, an explosive rally could unfold once policy responses accelerate.

The digital asset market is currently continuing a historic bottoming process at the intersection of short-term headwinds and macroeconomic tailwinds. Major altcoins, including Cardano, are completing technical compression alongside project-specific catalysts, suggesting that rotational buying following a Bitcoin-led rally may intensify sharply. With macroeconomic indicators pointing to an expansion cycle and policy-driven liquidity injections converging in 2026, the year is expected to offer unprecedented profit opportunities for investors who have patiently built their positions.

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