Amid the ever-changing situation in the cryptocurrency world, the outbreak of the “altcoin season” has attracted much attention, and is currently in the undercurrent stage before its outbreak.
Recently, some strong altcoins have emerged and taken the lead, but compared with the crazy altcoin surge in 2021, the current situation is obviously lacking a "strong fire". The reason is that it has just experienced the gear cycle stage led by Bitcoin. When Bitcoin prices rise, it is like a giant magnet, absorbing most of the market's liquidity. In this case, even if Bitcoin's momentum changes, it is difficult for altcoins to usher in a real strong rebound.
At present, the market is at a new node of change. The fire crab cycle has just started. Bitcoin's dominance continues to strengthen, and there is no obvious turning point signal. However, experience tells us that only when Bitcoin's dominance is broken and funds overflow from the big cake, will the "fuse" of the cottage season be truly ignited, and the feast of altcoins will be opened. It is worth noting that the cottage market has generally risen in recent days. What is quite strange is that when this phenomenon occurred, Bitcoin was in a high-level adjustment state.
Driven by the "King of Understanding Economy" factor, Bitcoin's performance in this round is outstanding. This is actually a healthy and positive market prelude. The powerful Bitcoin, like the cornerstone of a towering building, lays a solid foundation for the subsequent prosperity of altcoins. The higher Bitcoin rises and the larger the amount of capital accumulated, the more significant the subsequent funds transferred to altcoins will be. When the altcoin season breaks out, many niche currencies may usher in a turning point in their fate and a surge in their value. Let's wait and see, waiting for the market to change.