Bitfinex report: Speculative funds are shifting from Bitcoin to Altcoin, which usually heralds the arrival of the "Altcoin season"

According to the news from Mars Finance, Bitfinex released a report stating that "Bitcoin is approaching the historic $100,000 milestone, driven by unprecedented inflows of capital into Bitcoin ETFs and strong institutional demand. Although it encountered profit-taking resistance at its latest all-time high, Bitcoin has shown resilience, holding around $96,000 over the weekend and recovering some of its upward momentum in early Monday trading. Bitcoin has risen 47% since the pre-US presidential election low of $66,880, and an astonishing 130% year-to-date, breaking new ground. Bitcoin's performance relative to traditional assets is undeniable: Bitcoin's market capitalization has now surpassed Saudi Aramco, making it the world's 7th largest asset, with a valuation exceeding $1.9 trillion at its peak. While Bitcoin's upward momentum is impressive, it is not without profit-taking by long-term holders. Although the pressure has increased, it remains manageable compared to the historical highs in March 2021 and March 2024. These trends suggest that market momentum has temporarily stalled, but the overall market may absorb the selling pressure and continue to rise in the medium term. The overall Cryptocurrency market (excluding Bit and Ethereum, known as the Total3 index) has also reached a new cycle high, with a 23.2% rally from low to high last week driven by surging investor sentiment - the largest since April 2021. Large-cap Altcoins, such as Solana (SOL), have reached new all-time highs, breaking through key resistance levels including the April 2022 high. The Altcoin market capitalization is now approaching the $984 billion peak of May 2021, indicating that speculative capital is shifting from Bit to Altcoins. Historically, such capital rotation often heralds the arrival of 'Altcoin season', where Altcoins outperform Bit. In fact, the annualized financing rates of large-cap Altcoins have already exceeded 45%, signaling an intensification of speculative activity. With increased retail investor participation, short-term volatility is expected to rise, further fueling the momentum of Altcoins. However, these conditions also warrant caution, as extreme financing rates often portend a violent market correction."