Is this round of bull market really unrelated to altcoins? Let's reveal the reasons behind it.
First, the approval of ETFs has changed the liquidity transmission mode of the market. In the past, incremental funds would enter BTC and ETH through stablecoins, and then be transmitted to the altcoin market. But now, incremental funds in the traditional market are more inclined to invest directly in BTC through ETFs, resulting in a lack of liquidity in the altcoin market.
Secondly, the continuous unlocking of "VC tokens" has brought continuous selling pressure, forming a market pattern of oversupply. Although the prices of some altcoins have fallen, the circulating market value has continued to hit new highs.
Finally, new projects that opened at sky-high prices continue to drain the remaining liquidity in the market, making the liquidity of the altcoin market further scarce. The FDV of these popular projects generally reaches billions of dollars, further exacerbating the liquidity problem in the altcoin market.
Investors need to be cautious about the altcoin market. How do you view the relationship between this round of bull market and altcoins? Welcome to leave a message in the comment area to share your views!
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