In previous bull runs, we saw money flow from $BTC to alts. Will this time be any different?
Currently, majority of the volume going into $Bitcoin spot ETFs are coming from institutions (Professional investors) and experienced investors.
Many of which won’t be in a rush to take profit on $BTC and ape into a low cap altcoin like your average degen.
If they will ape into altcoins, it will only be a few that have been gaining institutional demand such as $SOL & $ETH (obviously).
So this is something to consider.
Also I feel like altcoins are at the point where we need new investors (new retail) to come into the market in order for us to see a real pump.
Cos most of us have already allocated heavily into the market, so where will the liquidity that will pump our bags come from?
As retail trading volume, twitter engagement and youtube views suggest, retail isn't fully yet back despite the recent market sentiment.
With the exception of retail and when they return, which crypto sector will get the most inflow of capital if or when the $BTC spot ETF buyers decide the take profits and rotate into alts?
Personally I’m betting on some market leaders in AI, RWA and Layer 1.
These are the sectors that have been developing the most recently, gained a lot institutional interest and funding.
