The money earned in this circle comes from those who did not sell in time; if you can sell at a good time, that's profit.
#币圈暴富
Generally speaking, new funds entering the coin circle are like a group of novices chasing trends, and they will first flock to the most famous Bitcoin, after all, everyone has only heard of 'big pie'. As more and more people buy in, Bitcoin's price and market share begin to rise steadily. However, this craze will not last forever, just like a bucket of water, once full, it will overflow.
When Bitcoin's price rises to a certain level, beginners start to feel that other coins also have opportunities, so funds gradually flow to second-tier coins, such as Ethereum (ETH), and then spread to niche coins like Solana, BNB, and DOGE. After all, having made money with Bitcoin, they naturally want to try other projects to see if they can make another profit.
So, at the beginning, everyone crowded onto the big ship of Bitcoin, and when the ship is full, some people will jump onto other small boats to continue searching for new opportunities. This is the general path of fund flow.
In a situation where most chips are locked by 'old players', the new funds are like a spark, which can gradually push the market value of small coins to soar. For example, Bitcoin may only rise a little, but Ethereum (ETH) could surge 5 to 8 times, and smaller coins can see even more astonishing increases.
When the market value of these small coins is rising, Bitcoin's market share will decline. Once it drops below 50%, it can be dangerous—this is usually a precursor to a crash in small coins. The market is too hot, and after the carnival comes the crash. For example, when Bitcoin drops by about 20%, other small coins may directly drop by 70%; that's how it works.
Therefore, understanding the trend of Bitcoin is enough because it is often the barometer of the entire market.