The recent trend of Bitcoin is like a vampire possessing it; previously it was just sucking the blood of altcoins, but in the past two days, it hasn't even spared the MeMe coins on the chain.
Historically, there are generally a few patterns in the relationship between BTC and altcoins:
First, when BTC rises, altcoins also rise, just like in a bull market where everyone is making money. At this time, if you see altcoins performing even better than BTC, then it's time to increase your position; on the contrary, you need to be cautious.
Second, when BTC falls, altcoins also fall. At this time, you need to take precautions, buying some stablecoins and blue-chip tokens. Want to short? This is when you might consider it. Long-term trend traders should just wait for the trend to reverse.
Third, when BTC falls but altcoins rise, this situation is rare. However, if BTC is just fluctuating without a significant drop, it might be a short-term altcoin season, so you can take on some risk exposure and take a chance.
Fourth, when BTC rises but altcoins fall, BTC is performing better than the market, consistently reaching new highs. This situation generally occurs before a halving or at the beginning of a bull market. At this time, you should take the opportunity to accumulate altcoins and wait for them to explode.
But now, BTC and altcoins have decoupled completely, with the duration and extent far exceeding historical cases.
Moreover, with the approval of the BTC spot ETF, everyone is worried that the model of allocating funds to crypto assets is about to change. Yesterday, MSTR became the hottest trade in the US stock market, which validates that people's concerns are becoming a reality, right? The skepticism towards the altcoin season is becoming increasingly persuasive.