I believe that as the price of bitcoin rises, the volatility will also increase. From 49,000 US dollars, it has risen by 20,000 US dollars, an increase of nearly 41%. This increase almost kills all altcoins, so whether Bitcoin can break through and stabilize at 70,000 is the key. If Bitcoin can successfully break through and stabilize at the 70,000 mark, it will be like a nuclear bomb, detonating the entire altcoin market. By then, altcoins will catch up and share the bull market feast. However, the premise of all this is still the flood of liquidity. The interest rate cut has become the key to activating the altcoin bull market. Why didn't this round of general rises appear like the last round? First of all, liquidity contraction has become the key factor for the failure of this round of market to rise generally. Recalling the last round of bull market, global interest rates were generally at extremely low levels. In some countries, deposits were not only unprofitable, but also required banks to pay custody fees. Such a liquidity flooding environment provided sufficient fuel for the market and promoted the overall rise in currency prices. In this round of the market, liquidity contraction is like an invisible hand, tightly strangling the throat of the market. Funds no longer flow as freely as in the past, but become more cautious and picky. Therefore, even if mainstream currencies such as Bitcoin perform well, it is difficult to drive the general rise of the entire market.
Secondly, the proliferation of altcoins is also an important reason for the absence of a general rise.
With the continuous development of the digital currency market, more and more altcoins have sprung up like mushrooms after a rain.
These altcoins have their own characteristics, but often lack sufficient strength and background support.
In the context of liquidity contraction, they are more inclined to choose those mainstream currencies with strength rather than altcoins with higher risks.
Even if a few altcoins perform well, it is difficult to form a large-scale general rise.
The bull market is just beginning. If you are not suitable for taking the big cake, and want to take the altcoin to fight for a high multiple but don’t know which coin to take, then observe the main bag and you will lay out the entire bull market.
