This year's market is very different and is following new rules. Applying the rules of the previous 3 halving cycles seems to no longer be effective. Look at #Coinmarketcap
- Total market capitalization of the whole market is nearly 3000B$, not even equal to the capitalization of #Microsoft, which is not equal to an American company
- There are more than 2,000,000 large and small token projects
- While #BTC's own capitalization accounts for 54%,#ETHaccounts for more than 15%, so the remaining 2M projects only account for more than ~30%. That means the remaining 30% of projects only have a capitalization of more than 1,000B$
- The current market is different from 2021, in the past there were only 1-2 main trends like Gamefi, Defi. In 2024, there will be more than 10 big trends: AI, RWA, DEPIN, Layer-2, NFT... That means 1000B$ divided, each trend's capitalization is only about 100B$.
It suggests that:
- Money really only flows into BTC
- Altcoins are simply increasing because old money in the market is being turned around, running around more than 10 different trends... That is, there is currently no new money flowing into crypto. Money is completely focused on BTC. Next phase, perhaps:
- Cash flow continues to pour into BTC: 70K-100K$
- If ETH is approved for ETF and Restaking explodes => money flows into ETH => ETH moon soon 🚀
- Altcoins increased but not significantly and not sustainably.
Capital allocation plan:
- 50% BTC and ETH
- 50%: divided equally over 10 trends, each trend selects 1.2 lead projects
What about your opinion? Please leave a comment below 👇👇👇
