Bitcoin (BTC) rally usually has a positive impact on the altcoin market, but this reaction varies depending on factors such as market momentum, asset relevance, and overall investor interest. Here’s what usually happens:

1. Altcoins follow BTC (ripple effect):

When Bitcoin surges, it attracts attention and liquidity to the crypto market as a whole. After consolidating or stabilizing, investors often diversify their gains into altcoins, leading to a rally in these coins.

Large-cap altcoins, such as Ethereum (ETH), are usually the first to react positively.

2. BTC dominance impacts altcoin reaction:

If BTC dominance increases: Altcoins may take longer to react, as most of the liquidity is concentrated in Bitcoin.

If BTC dominance decreases after its rally: Altcoins may benefit from increased capital inflow.

3. Speculative altcoins (meme coins and small caps):

Coins like Shiba Inu (SHIB) or other speculative altcoins tend to have explosive movements, but they are also more volatile. These movements usually depend on community interest and specific events (such as token burns, upgrades or partnerships).

4. Macroeconomic and market conditions:

If the crypto market is in a bull market, altcoins tend to perform very well after BTC leads.

On the other hand, in a sideways or bear market, altcoins may not react immediately.

Strategy to take advantage:

Monitor BTC dominance: When it starts to fall after a period of Bitcoin's bull run, it is usually the signal to enter altcoins.

Choose altcoins with solid fundamentals: Identify projects with utility, good adoption or long-term growth potential.

Track specific altcoin events: Token burns, updates, or exchange listings can accelerate appreciation.

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