As Bitcoin (02625113909) breaks through the psychological barrier of $98,000, the entire cryptocurrency market shows signs of a bull market once again. The price of Bitcoin reflects strong market demand and attracts more institutional funds. However, historical data indicates that when Bitcoin enters a high consolidation phase, funds often flow into the altcoin market in search of higher returns.

Why might altcoins be on the rise?

1️⃣ Fund Rotation Effect:

In the later stages of a bull market, funds gradually shift from Bitcoin to Ethereum and other altcoins. This is because investors hope to take advantage of the higher volatility of altcoins to achieve greater profits.

2️⃣ Technological Breakthroughs:

Recently, some altcoins have seen critical technological updates, such as Ethereum's upgrades and the proliferation of layer two solutions, injecting new momentum into the market. This increases investors' confidence in the prospects of other coins.

3️⃣ Community Effects and Meme Coin Craze:

With the growing influence of social media, meme coins like Puppies are attracting the attention of young investors and communities. Compared to traditional value-storage tokens, these coins are more likely to trigger short-term speculative frenzies.

4️⃣ Macroeconomic Environment:

The weakness of the dollar and the potential reduction of interest rate hikes by the Federal Reserve further boost market confidence. Such macro conditions typically accelerate the inflow of funds into risk assets, including altcoins.

Summary and Outlook:

Although a full-blown altcoin surge still requires Bitcoin to stabilize further, market signs indicate that fund rotation has already begun. Meme coins like Puppies, with their unique community-driven model, have garnered attention, especially with Elon Musk's endorsements and his mother's four supportive replies! They may become the next focal point of interest. If you plan to participate in this wave of altcoin enthusiasm, be sure to conduct a risk assessment and closely monitor the long-term value and market conditions of the projects.