At this stage, the current situation of the altcoins coming out of the altcoin bear market is due to the following reasons:

1: A large number of tokens are unlocked, and nearly $2 billion is expected in the next ten weeks

2: Pressure from venture capital funds. In the first quarter of 2022, venture capital funds invested $13 billion, but the market has been falling. Now, these funds are under pressure from investors to return the funds because artificial intelligence has become a hotter investment area.

3: Market dynamics, lack of liquidity: mainstream coins such as Bitcoin and Ethereum have not formed a bear market pattern, but the altcoin market shows signs of lack of liquidity.

4: Actions of institutional investors: Institutional investors tend to close their positions and stop losses when the market is unfavorable, while retail investors often hold their coins for appreciation because they are unwilling to bear losses. Such behavior is likely to lead to greater losses.

Future Outlook

1: Stability of Bitcoin: Bitcoin will remain stable in the next round of bull market. Traders should transfer their positions to mainstream assets such as Bitcoin to protect their assets when liquidity slows down.

2: Market opportunities: As the market adjustment ends, high-quality altcoins may have opportunities again. Investors should keep an eye on it and seize the opportunity of market recovery in time.