People rotate out of Bitcoin into Altcoins when they think Bitcoin is heating up & close to a top. It’s almost like you get the best of both worlds. Ride the Bitcoin wave of fomo & rotate into Altcoins to catch Altseason, take profits there, before the whole cycle comes to an end. We are not in Altseason yet, it will be later this year.
That's how it works usually when bitcoin dominance is reducing.
However we also need to remember that there are some institutional investors that aren't rotating to altcoin and the fact that altcoin is already too diluted doesn't help either.
So expect there to be some of altcoins that doesn't pump. Mainly the ones with low trading volume because the market just don't care.
In theory, Bitcoin is attracting fresh capital from institutional investors, but altcoins are not. The number of altcoin holders who are relying on the shift of money from Bitcoin to altcoins is very small, especially since the amount of fresh money entering the crypto market is not as large as institutional purchases of Bitcoin.
However, some altcoins will soar to the moon, I'm sure of that. However, an altseason is unlikely, with the crypto market cap not much different from 2021, but today it has a very large number of products that exceed 10x the total number of new products created during this cycle.