Bitcoin has recently surged significantly, while altcoins are watching from the sidelines, even showing no fluctuations. This phenomenon has left many investors confused. So, what is driving Bitcoin while altcoins remain 'unresponsive'? The following points can explain:
1. Market focus is on Bitcoin
Bitcoin is the 'weather vane' of the crypto market; its price fluctuations often serve as a barometer of overall market sentiment. When macro positive news appears (such as ETF application progress, institutional entry, etc.), funds first flood into Bitcoin due to its stability and higher market recognition.
And what about altcoins? They usually only begin to 'take over' and rise after Bitcoin's price stabilizes. The current market may not have reached this stage yet, and funds have not flowed into higher-risk assets.
2. Institutional funds favor Bitcoin
Institutional investors are more inclined to choose Bitcoin, an asset with a large market capitalization and strong liquidity, especially at the early stages of a major trend recovery. In contrast, altcoins, due to high volatility and project risks, struggle to be the top choice for institutions.
3. Risk appetite decreases
After the last round of the crypto winter, investors are more cautious. Bitcoin's status as 'digital gold' makes it a safe-haven asset, while altcoins are regarded as 'high-risk, high-reward' gambling assets. Naturally, altcoins are sidelined when overall risk appetite declines.
4. Lack of positive drivers within altcoins
Many altcoins require specific technological advancements or project developments to drive their prices. Recently, the market has lacked sufficient positive events for altcoins. Additionally, some altcoins have unstable foundations and exhibit excessively speculative behaviors, leading to a lack of investor confidence.
To summarize: Bitcoin is at the starting point of the 'marathon' running ahead of altcoins**
Bitcoin's rise is often the prologue to the overall market recovery. Altcoins need more time to mature or to wait for greater market confidence to be restored. In other words, Bitcoin is charging ahead while altcoins are still 'warming up'. Whether they will catch up later depends on market risk appetite and capital flow.
In short: Bitcoin is the pioneer of the crypto market, while altcoins are the followers; their 'show' has yet to begin.