Recently, the market's focus has been on Bitcoin (BTC). Although altcoins have also rebounded slightly, our current market conditions still appear relatively stable compared to the crazy altcoin boom in 2021. Why is this the case? Let's analyze the reasons behind it.
The impact of Bitcoin dominance
First, we have just experienced a phase where BTC led the rise. During this phase, the rise of Bitcoin attracted the inflow of most market funds, causing the altcoin market to be relatively quiet. The liquidity of Bitcoin's rise has absorbed most of the funds at this stage, so the performance of altcoins is naturally not that outstanding.
But the key point is: Bitcoin's rise is not over yet, and the rebound of altcoins requires a clear signal. When Bitcoin's dominance changes, altcoins will usher in a real outbreak.
The Law of History and Bitcoin’s Strong Breakthrough
Looking back at history, we will find that Bitcoin's performance in the last bull market almost led the entire market. Especially at the end of 2020, Bitcoin's rise continued to outperform the market, and it was not until the halving in 2021 that altcoins began to attract market attention and capital inflows. It can be said that Bitcoin has always been the engine of the bull market, and the rise of altcoins depends on the strong performance of Bitcoin.
If this pattern continues, we have reason to believe that the beginning of 2025 may be the time node for the real outbreak of altcoins. At present, Bitcoin is still rising steadily, which means that the outbreak of altcoins still needs to wait for further changes in Bitcoin's dominance.
Potential of the Altcoin Market
According to the latest market data, we can see that the total market value of altcoins is still far behind that of Bitcoin. At present, the speculative index of altcoins is 40%, while in the last bull market, this index reached more than 90%. This shows that the altcoin market is still at the bottom and is far from reaching its limit, and there is still huge room for growth in the future.
Summary: The arrival of the altcoin season is only a matter of time
In summary, the arrival of the altcoin season is inevitable, but it will not be until the dominance of Bitcoin changes. At present, the strong performance of Bitcoin has laid the foundation for the rise of altcoins. With the transfer of market liquidity, we can foresee that the outbreak of altcoins will be the core of the next stage.
For investors, now is the best time to invest in altcoins. The future market will bring us more opportunities. If you miss this wave, you may miss the next round of wealth opportunities.