As the price of Bitcoin gradually approaches the $100,000 mark, the altcoin market seems to be entering its active cycle.
Recently, several cryptocurrencies have shown a trend of rotating upward, among which ADA, DOGE, and others have not experienced a pullback after the surge, instead continuously setting new historical highs. Bitcoin maintains a high position in both market capitalization and price, under this background, many investors, including myself, have begun to shift profits from Bitcoin into low-priced altcoins.
During the weekend, cryptocurrencies like KSM and SAND experienced violent surges; although this may involve intervention from exchanges, it undoubtedly injected strong optimism into the entire market.
From the perspective of the market cycle, we are currently in the most critical 5-month window period of a bull market. If altcoins fail to effectively gain momentum during this period, they may miss out on valuable growth opportunities.
Although Bitcoin has not yet broken through the psychological barrier of $100,000 to fully stimulate market enthusiasm, once the breakthrough is achieved, extensive media coverage will attract a large influx of new investors into the market. Given Bitcoin's high price, new investors tend to prefer investing in relatively lower-priced altcoins.
In the later stages of a bull market, market sentiment will become the dominant factor, and the surge of cryptocurrencies will further intensify investors' FOMO (fear of missing out) mentality, thereby driving further evolution and expansion of market trends.
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