Altcoins in the Bull Market's Final Phase: Momentum Investing and Capital Reallocation

The 2025 crypto bull market is entering its final, most volatile phase, marked by a dramatic reallocation of capital from Bitcoin to high-potential altcoins. As on-chain indicators like the MVRV Z-Score and NUPL (Net Unrealized Profit/Loss) index signal extreme overvaluation for Bitcoin 6 Crypto Bull Market Peak Indicators for 2025 | Phemex Guide^[1], investors are increasingly shifting funds to projects with strong fundamentals and innovative use cases. This shift mirrors historical patterns observed during previous bull cycles, where Bitcoin dominance (BTC.D) typically declines as altcoins capture speculative and institutional attention Crypto Bull Market: Are We in the Final Stages? - Medium^[2].

Capital Reallocation: From Bitcoin to Altcoins

Bitcoin's role as a “safe haven” within crypto is temporarily ceding ground to altcoins as the market enters its euphoric stage. Data from CryptoQuant reveals that 36% of Bitcoin's supply was traded within the last month in Q4 2024, a metric historically correlated with market peaks CryptoQuant: Crypto Bull Market Approaching Its Final Stage^[3]. Simultaneously, Ethereum (ETH) and Solana (SOL) are surging, driven by institutional adoption of Ethereum ETFs and Solana's scalability in decentralized finance (DeFi) and Web3 gaming Top Altcoins to Buy Now in 2025^[4]. Ethereum's price has been further buoyed by growing demand for decentralized applications (dApps) and non-fungible tokens (NFTs), while Solana's low fees and high throughput attract developers and traders Best Altcoins to Buy During the 2025 Bull Market Boom^[5].

Emerging projects like PEPENODE (PEPENODE) and Best Wallet Token (BEST) are also capturing attention. PEPENODE, a “Mine-to-Earn” blockchain-based game, offers token burning mechanisms and high staking yields, positioning it as a speculative favorite in the final quarter of the bull cycle Best Altcoins to Buy for the Q4 2025 Bull Run^[6]. BEST, integrated into a multi-chain wallet ecosystem, leverages its roadmap for a crypto debit card and NFT gallery to attract retail and institutional capital Analysts Say These 5 Are the Best Altcoins to Buy for Next Bull Run^[7]. These tokens exemplify the “innovation-driven” momentum strategies gaining traction as investors seek asymmetric returns.

Momentum Investing in the Final Phase

Momentum investing—capitalizing on rapidly appreciating assets—has become a defining strategy in the 2025 bull market's final phase. Altcoins with clear utility, such as Hyperliquid (HYPE) and Uniswap (UNI), are outperforming due to their roles in decentralized trading and DeFi infrastructure. HYPE, for instance, surged 342% in token price following the launch of its decentralized exchange, while Uniswap's UNI token benefits from the expansion of its Unichain platform Best Altcoins to Buy Now in the 2025 Bull Run^[8].

Projects addressing real-world challenges, like Qubetics, are also gaining momentum. Qubetics' focus on blockchain interoperability and cross-chain communication aligns with broader industry trends, making it a candidate for sustained growth despite market volatility . Meanwhile, niche tokens like MAGACOIN FINANCE—with its capped supply and transparent audit process—are being touted for a potential 38X upside, though their success hinges on regulatory clarity and adoption .

Risk Management and the Path Forward

While the final phase of a bull market offers outsized returns, it also demands disciplined risk management. As Bitcoin's Puell Multiple enters a red zone—indicating miners are selling Bitcoin at historically high rates—investors should prioritize diversification and gradual profit-taking . A rebalanced portfolio might allocate 60% to Bitcoin for stability, 30% to Ethereum and Solana for growth, and 10% to high-risk, high-reward altcoins like PEPENODE or MAGACOIN FINANCE .

The coming months will likely see a “flight to safety” as Bitcoin dominance rebounds, signaling a potential market correction. Investors should monitor on-chain metrics like BTC.D and the MVRV Z-Score to time exits or rebalances . For now, the 2025 bull market's final phase remains a high-stakes opportunity, where momentum strategies and capital reallocation could define the next chapter of crypto's evolution.