Bitcoin rises alone, while other coins remain still? What exactly is being sold in the market?
The recent market conditions are driving people crazy: Bitcoin is rising steadily, while other mainstream coins and altcoins are stagnant, as if they are all 'playing dead'. Many might wonder, what is the intention behind this market movement? What changes have occurred in market sentiment and capital flows?
Why aren’t other coins following the rise?
Limited market capital: Most of the capital is concentrated in Bitcoin, temporarily leaving other coins 'neglected'.
Sentiment has not fully warmed up: Although Bitcoin's rise has attracted attention, the overall market sentiment remains cautious, with investors preferring to wait for mainstream or hot coins to show a clear direction before taking action.
The strategic significance of the disparity in gains: Bitcoin, as a leading indicator, often needs to first boost market sentiment, after which capital will gradually spill over to other coins.
What to do next?
1. Do not chase the rise easily
When Bitcoin is leading the rise, the risk of chasing high prices is significant, especially when capital has not fully entered the market.
2. Pay attention to capital spillover effects
Once Bitcoin’s rise slows down, funds may flow to other coins, especially to those like ETH and SOL who are seen as 'big brothers'.
3. Ambush hot sectors
Recently, one can pay attention to Layer 2, Web3, or Meme sectors, as these areas often see a follow-up rise after a strong period for Bitcoin.
Bitcoin rises alone while other coins remain inactive, which is actually a normal rotation rhythm in the market. As investors, it is crucial to maintain patience at this stage and wait for changes in capital flow and market rhythm. Major market movements often brew from anxiety; remember: your stability now determines your winnings in the future!