The Catalyst: Declining BTC Dominance

Bitcoin has long held its position as the king of crypto, but history shows that when its dominance declines, capital often flows into altcoins. This creates a domino effect:

  1. Bitcoin Consolidation: When BTC stabilizes or retraces slightly, traders begin reallocating funds to altcoins with higher growth potential.

  2. Ethereum Takes the Spotlight: As the second-largest cryptocurrency by market cap, Ethereum is the natural first choice for investors looking to diversify their crypto holdings

  3. Why Ethereum is Ready to Explode

Several factors make Ethereum an attractive candidate for the next big move:

  1. Institutional Interest: With Ethereum’s widespread adoption in decentralized finance (DeFi) and NFTs, it has gained substantial institutional support.

  2. EIP-1559 and Deflationary Supply: Ethereum’s transition to a deflationary asset post-merge makes it increasingly scarce over time, boosting its value potential.

  3. Layer 2 Expansion: The rise of Layer 2 solutions like Arbitrum and Optimism continues to drive adoption, scaling Ethereum without compromising its decentralization.

  4. The Ripple Effect: High Caps to Low Caps

When Ethereum begins its run, the rest of the market often follows in a predictable pattern:

  1. High-Cap Altcoins: Coins like Solana ($SOL), Binance Coin ($BNB), and Cardano ($ADA) typically see strong moves as investors branch out from Ethereum.

  2. Low-Cap Gems: Once confidence spreads, speculative interest shifts to smaller altcoins, which often deliver the highest percentage gains during altcoin seasons.

How to Position Yourself

If this pattern holds true, here’s how you can prepare:

  • Diversify Early: Start by allocating to Ethereum, but consider high-cap altcoins with strong fundamentals.

  • Stay Informed: Monitor Bitcoin’s dominance and Ethereum’s price action closely.

Manage Risk: Altcoin seasons are lucrative but volatile. Take profits at key resistance levels to secure gains.#BTC100KToday?