In this round of bull market, there is an interesting phenomenon. Although Bitcoin has repeatedly set new highs, the performance of altcoins is relatively poor. Let's explore the three key factors behind it.

Reason 1: ETF changes the flow of funds.

First of all, we have to mention that the approval of Bitcoin ETF has greatly changed the flow of market funds. In the past, funds usually flowed from stablecoins to BTC and ETH, and then to altcoins. But funds prefer to invest in BTC directly by buying ETFs, which has caused funds to stop flowing at the BTC level. It can no longer be transmitted to the altcoin market, thereby greatly reducing the liquidity of the altcoin market.

Reason 2: Selling pressure caused by the unlocking of VC tokens.

The second key factor is the unlocking of a large number of investment institution tokens. The continuous unlocking of these tokens has brought heavy selling pressure to the market. You may notice that although the prices of some altcoins are falling. But their circulating market value has abnormally continued to rise, which is precisely due to the increase in volume after the unlocking of VC tokens.

Reason 3: New projects absorb liquidity.

The last reason is related to the high-profile listing of new projects, such as IO.net, zkSync, LayerZero and other star projects. Their listing not only attracted a lot of attention, but more importantly, they sucked away the liquidity of funds. These multi-billion dollar financing projects have further aggravated the liquidity tension in the altcoin market.

In short, ETFs, VC token unlocking and new project listings together constitute the main reasons for the decoupling of altcoin trends from mainstream coins. In the cryptocurrency investment market, change is the only constant, so you need to be vigilant at all times and analyze market dynamics rationally.