Many of you are worried and asking questions about the very poor performance of altcoins currently đȘ
Often seen as the next leaders of different sectors/narratives.
Even the most serious and interesting projects are currently in the red or are offering really not great performances...
âĄïžBut, what if I told you that all this is perfectly LOGICAL!
Why? How? I'll explain it to you in detail đ
đŻBased on previous cycles (2017/2018 and 2020/2021), the cryptocurrency market operates in different phases which follow one after the other to complete a complete cycle.
Market Rise -> BULL RUN BTC -> Altseason -> Correction -> Bearmarket -> Range / Accumulation
And then we start again for a round (see image 1)
Currently, we are in the phase of market rise and significant accumulation on Bitcoin.
âĄïžMoreover, for several weeks, the dominance of Bitcoin (in a way, its strength Vs the rest of the crypto market) has been stronger and stronger.
Currently, BTC dominance is at +-59% (see image 2)
For info:
- January 2023: 40% (BTC = $15,000)
- January 2024: 50% (BTC = $40,000,000
đŻThis means that money flows are mainly directed towards BTC.
Investors and speculators favor this one because it currently has the best chance of increasing your portfolio.
And in terms of money flows, we distinguish two main categories:
- Fresh money coming from outside the market
- Money that is already present on the market
What interests us is the money already present on the market.
Of course, we find people who own stablecoins, and who will decide to bet on BTC now.
âĄïžBut also, investors who will voluntarily part with part or all of their altcoins (selling pressure) to position themselves on BTC.
"Well yes, why keep alts that don't move or lose value. When by betting on BTC now, I can grow my bag?" đ€
This is mainly why ALTcoins are CURRENTLY suffering so much.
Interest is set around BTC.
đŽSo does that mean it's over for alts? đ
NON !
It's just that right now is not the time to "bet" on it.
In the continuation of the cycle (see image 3)
The gains that will be made on BTC will partly be sent back as a priority to Ethereum.
Then, later, on the largecaps and then the lowcaps (the famous altseason).
âĄïžThis significant influx of liquidity into suffering alts will cause an explosion and an increase in the price of most projects.
đŻAnd therefore, once again, generate interest around altcoins!
And then, later, at the end of the cycle, it will be the bear market's turn again and we start again.
đšIn ââconclusionđš
There is currently no reason to worry about altcoins.
The phase we are currently witnessing is not new and those who were present in previous cycles have already experienced it.
As long as Bitcoin performs well, alts will continue to bleed.
It will only be when profit taking is significant on BTC that alts will be able to take advantage of it đ
And currently...we are in the middle of "Bitcoin season" đ
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Disclaimer: This article is for information purposes only and does not constitute financial advice. It is strongly recommended that you do your own research before making any investment decisions.
Thanks everyone đ
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