Analysis of Altcoin Investments in the Current Bull Market

Yesterday, I posed the question: "Which coin do you regret buying the most in this bull market?" The responses were remarkably consistent—investors lamented their decisions to buy altcoins.

Whether it was established coins from previous bull runs like $UNI , $DOT , $DOGE , or newer entries in this cycle such as ORDI, BB, WLD, very few managed to turn a profit. Instead, these coins have experienced prolonged downturns.

A notable observation from the group is the saturation of new coin offerings flooding the market, reminiscent of the rapid project launches seen in traditional equity markets. This influx has led to a concentration of funds in a handful of high-quality projects, exacerbating the divide between top-performing assets and lesser-known alternatives.

Altcoins, therefore, see significant opportunities only in periods characterized by extreme market greed. Key indicators of such conditions include:

1. A greed index surpassing 80.

2. Major cryptocurrencies achieving new historic highs.

3. A drastic decline in the market share of the top 5 cryptocurrencies.

Presently, the top 5 cryptocurrencies command more than 80% of the total market capitalization, leaving less than 20% for all other altcoins combined. During the late stages of a bull market, secondary cryptocurrencies typically experience a brief surge in value, capturing market share and often trapping retail investors in the process—a common pattern observed during market cycles.

In the absence of overwhelming market exuberance, altcoins face limited growth prospects. As it stands, the anticipated altcoin resurgence remains distant.

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