Is there still a "Altcoin season" in this bull market?
This is one of the biggest concerns for cryptocurrency market investors right now. The price of Bitcoin has already approached six figures, while Altcoins are still in a continuous decline. As ordinary investors, those who hold Bitcoin are few and far between, and most people hold various "value coins" or MEME coins, but are constantly losing money. It can't help but make one sigh: will the "good days" of Altcoins really come?
Bitcoin dominates the market, why are Altcoins in dire straits?
The current market logic has undergone significant changes compared to the past, and the previous "trash flying high, mindless making money" situation seems to have become history. Nowadays, the market is severely stratified, and large funds are more inclined to avoid risk assets, especially Bitcoin. This has led to the influx of new funds mainly into Bitcoin, forming a stark contrast:
New funds outside the circle: Focusing on mainstream assets such as Bitcoin.
Small funds inside the circle: Chasing short-term high-yield MEME coins, going wherever there is a money-making effect.
More interestingly, even top-tier exchanges (such as Binance, Upbit, OKX) have shown obvious preferences: if a MEME coin is listed, the price often surges sharply; if it's a so-called "value coin", the price actually falls. This phenomenon fully demonstrates the short-term capital flow and risk preference in the market.
ETH gives way to SOL, the "Altcoin King" position changes hands
In this bull market, the former "Altcoin King" Ethereum seems to have been replaced by Solana. The performance of the Ethereum ecosystem has fallen short of expectations, and the MEME coin of the same name on the SOL chain is actually more than ten times as active as Ethereum, which also reflects the market's preference for emerging chains. This trend further undermines the projects that were originally the mainstay of Altcoins in the Ethereum ecosystem.
When will Altcoins see a turnaround?
Although the current market situation is unfavorable for Altcoins, it is not completely hopeless. If two of the following three conditions are met, we may see the return of the Altcoin bull market:
Bitcoin breaks through $100,000: And remains stable above $100,000 for at least two weeks.
ETH staking ETF is approved: This will attract off-chain funds to focus on the Ethereum ecosystem and other native assets.
Crypto regulation relaxes, innovation returns: If the on-chain ecosystem experiences another wave of innovation similar to the "DeFi Summer", or even a few "killer applications" emerge, investors' risk appetite may shift towards the higher-yield Altcoin sector.
Investment mindset: simplicity is the key
The market is volatile and noisy, but the core of trading is actually very simple:
Rise: It's a good opportunity to sell.
Fall: It's a good time to layout.
Stick to the basic principle of buying low and selling high, and wait for the opportunity to come. As long as the market meets the above conditions, the "Altcoin season" still has a chance to return. For investors, the top priority is to see the market pattern clearly, make calm decisions, and not be disturbed by short-term fluctuations.
Finally, there are actually a lot of things that haven't been written in, such as specific opportunities and specific decisions, which are often not something a single article can summarize.
To learn more about the secrets of wealth, or if you have any doubts, follow the public account: Caijing Dongchen
