During a bull market, not all altcoins will experience surges at the same time. I am not referring to small increases of 10%-30%, but to significant increases of 300%-700% or even more. These rotating surges constitute the main theme of the entire bull market cycle.
Funds are constantly flowing between different currencies, so the so-called 'Altseason' does not just last for a week, but spans several months.
Past funding flow patterns:
The traditional model is:
$BTC ➜ $ETH ➜ Large market cap coins ➜ Small market cap coins ➜ Repeat
But this model is no longer applicable. Current funding flows have become more complex and phased. Here is a detailed analysis of each stage:
Stage 1: Bitcoin's dominance
$BTC remains the market leader, initiating the upward trend. Only when $BTC temporarily stops rising will other parts of the market follow.
Stage 2: Initial momentum of core altcoins
Core altcoins represented by $SOL begin to show strength. At this stage, a few major altcoins may follow, but their performance is usually not as strong as $SOL.
(We are currently in this stage.)
Stage 3: Rise of mainstream MEME coins and major altcoins
- MEME coins: $DOGE, $SHIB, $PEPE, $BONK, etc.
- Major altcoins: $RENDER, $SUI, $APT, $LTC, etc.
Some coins may perform mediocrely or even miss this round of increases.
Stage 4: Narrative-driven coin explosion
The hottest narratives become the main characters of this stage:
- MEME coins
- AI-related coins
- RWA (Real World Assets)
- Narrative combination: AI x MEME, AI x DePIN, etc.
But careful selection is necessary; many narrative coins may be overlooked by the market, trapping investors.
Stage 5: Rapid surge of small market cap coins
At this stage, small market cap coins begin to rise rapidly, even showing significant increases every hour. This is the best time for high-quality MEME coins and projects with fundamental support.
- Winners may break through small market caps and enter mainstream visibility.
- Carefully identify strong coins and beware of the 'Pump & Dump' phenomenon.
Stage 6: Funds flowing back to Bitcoin
At this stage, funds gradually flow back to $BTC. As the market matures, this cycle may become less predictable.
Key advice: Seize the opportunities of the bull market
The bull market cycle provides an excellent opportunity to accumulate wealth; you have 5-9 months to seize this life-changing investment window.
But remember:
You can accumulate wealth in two ways:
1. Hold tokens for long-term appreciation
2. Trade tokens with short-term rapid growth
However, data shows that less than 1% of those who try the second method can succeed long-term.
Conclusion:
The bull market cycle is complex and full of opportunities. Understanding the phased patterns of funding flow is key to formulating investment strategies. While enjoying the benefits of the bull market, remember to invest rationally and choose a suitable way to move forward steadily.
