1. Differences between the 2020-2021 term and the current term
Each seasonal uptrend in the crypto market has its own characteristics and trends. The 2020-2021 cycle was marked by a typical “herding chicken” approach:
Junk coins and coin systems are often given the first price to attract cash flow from newcomers.
Then, Bitcoin (BTC) and top coins like Ethereum (ETH) really surged, pulling the entire market up.
Ultimately, most altcoins will soar along, creating a 'bubble effect'.
However, this season has a significant change. With the current BTC price too high compared to previous cycles, retail investors no longer have the ability to hold large amounts of BTC. Instead, they are focusing more on altcoins, while large institutions operate and bring BTC's market value first. This leads to a strategic shift for whales and exchanges.
2. Reasons BTC leads in this cycle
In the current cycle, BTC leads the market for the following reasons:
Major holdings of large institutions and ETFs:
Funds like Spot Bitcoin ETF and Ethereum ETF are driving the demand for BTC and ETH high. This creates a continuously increasing price strength.Few retail investors hold BTC:
Retail investors do not hold as much BTC as before, so whales do not need to worry about them driving prices down massively.Trust in BTC as a store of value:
With the uncertain economic situation, BTC is seen as 'digital gold', continuing to attract large amounts of capital.
3. Altcoins: When will it be their turn?
In this cycle, altcoins have not been able to grow steadily from the beginning:
Fish wait for goods: When the altcoin market fails to create significant returns, many retail investors will become discouraged and sell at a loss. This is an opportunity for whales to gather stocks at low prices before pushing prices strongly.
Market sentiment still leans towards BTC and ETH: As these two top coins continuously break records, capital flows strongly into them, creating altcoins waiting for opportunities.
However, altcoins still have great potential, especially in the fields:
Layer 2: Like Arbitrage, Optimism - plays a supporting role in the game supporting the Ethereum ecosystem.
Coin platforms: Solana, Cardano, Polkadot - platforms with strong communities and high practical applications.
Coin games and NFTs: The trend of blockchain gaming and NFTs is still growing.
Exchanges: Coins like BNB (Binance), HT (Huobi) have intrinsic strength from large exchanges.
4. Effective investment strategies in this growth trend
To optimize profits, advisors need to:
Be persistent with the current portfolio: If you hold altcoins, display them. Don’t cut losses just because a signal price hasn’t been found immediately. BTC cannot survive alone, and when capital flows shift, altcoins will drop significantly.
Avoid Fomo into BTC at high prices: Chasing BTC at this stage may lead to 'stacking errors'.
Allocate capital wisely: Maintain a reasonable ratio between BTC, ETH, and altcoins. If possible, set aside a small portion of capital to start investing in new projects with growth potential.
Control psychology: The market will experience strong correction phases to 'shake out' holdings. Be prepared with a strong mindset, avoid selling out of fear.
5. Prediction: Where will BTC and the entire market go?
BTC: It has the potential to reach 120,000 – 150,000 USD, but it won't go straight up. The market will have adjustments to ease the growth before continuing to rise.
Altcoin: The strongest phase for altcoins may begin in mid-2024, when BTC reaches its peak and the flow of money shifts to other coins.
Conclusion
This year’s bull market is different from previous cycles, but the opportunities are still very large. Those who show up, hold the right assets, and avoid jumping around will be the ones ultimately affected. At this time, use solid software and have a clear strategy. The real uptrend has just begun!
