Behind the "invisibility" of the altcoin bull market
In the current cryptocurrency market, although data shows that altcoins have experienced a bull market, many participants have not deeply felt this change. There are many complex reasons behind this phenomenon.
First of all, although the altcoin market has grown, its growth rate has gradually slowed down, and it is difficult to reproduce the explosive growth in the early stages, which has weakened the overall excitement of the market.
Secondly, Bitcoin (BTC) and Ethereum (ETH), as market leaders, occupy a significant share of the total market capitalization. However, the proportion of ordinary investors who actually hold large amounts of these two currencies is not high, resulting in them not being able to fully experience the asset appreciation brought about by the bull market, and thus not being aware of the popularity of the overall market.
Furthermore, as altcoin projects invested by early venture capital (VC) gradually enter the unlocking period, a large amount of chips are released into the market, increasing supply pressure and limiting the further increase in the total market value of altcoins. At the same time, the buying power in the market has been strongly impacted by airdrop selling. Even if new funds come in to take over, it is difficult to push up the price quickly.
In addition, an endless stream of new projects are springing up, attracting limited market funds. Under the background that the total amount of funds remains unchanged or even decreases, new projects often "suck" old copycat projects by diverting funds, exacerbating the market's financial tensions and further weakening the market performance of old projects.
To sum up, the "invisibility" phenomenon of the crypto bull market is the result of multiple factors such as the slowdown in market scale growth, the structure of leading currency holders, the wave of VC unlocking, the imbalance of market supply and demand, and the diversion of funds from new projects.
Strategy understanding--Penguin--599695450
