Altcoins plummet, Bitcoin remains strong: Market differentiation intensifies

Recently, the phenomenon of market differentiation has indeed been concerning: altcoins have been falling all day, while Bitcoin has remained above 90,000. Such a trend was rarely seen in the past, indicating not only a change in market structure but also a signal that making money in the crypto space is becoming increasingly difficult.

Why are altcoins collectively weak?

1. Funds concentrated towards Bitcoin

• Current funds are more inclined to flow into mainstream assets like Bitcoin, while altcoins lack liquidity support.

• Bitcoin is viewed as a safe haven, while the high volatility of altcoins deters investors.

2. Large holders withdraw, newcomers take over

• Funds from large holders of established altcoins continue to flow out, leading to further price declines.

• New investors have become the main force taking over, but market confidence is lacking, making it difficult for prices to stabilize.

How to cope with such a market?

1. Cautiously bottom-fish altcoins

• Current altcoins are in a weak cycle, and reckless accumulation may lead to further losses; position size should be controlled when bottom-fishing.

• Prioritize projects with actual value support or potential hotspots, rather than randomly chasing low prices.

2. Focus on mainstream coins

• In the context of market differentiation, mainstream assets like Bitcoin have shown stable performance; appropriate increases in allocation can reduce volatility risk.

Summary

The decline of altcoins stands in stark contrast to the strength of Bitcoin, indicating that the market is gradually maturing, with funds tending towards safe assets. Investing in altcoins requires greater caution, avoiding blind bottom-fishing, and paying attention to market sentiment and capital flows to seize real opportunities.