1️⃣ Bitcoin: Funds first flow into Bitcoin, leading to a price increase as it is the primary cryptocurrency in the market.
2️⃣ Ethereum: After Bitcoin’s rise, liquidity moves to Ethereum, the leading altcoin, increasing its market value and sparking discussions about its potential to surpass Bitcoin.
3️⃣ Major Projects: Funds then flow into large-cap projects like SOL and BNB, causing their prices to rise but with relatively lower risk.
4️⃣ Small Projects: Finally, money shifts to smaller projects, which experience massive price surges. However, this phase is risky as it often signals the end of the cycle and an increased likelihood of a market correction (price drop).
Conclusion: Investing becomes riskier as you progress through these phases.