Recently, many people have been wondering why Bitcoin is rising sharply while the Altcoins market is underperforming. Based on current factors, here are some possible reasons that could explain this situation:

1. Capital flow in the crypto market

In the cryptocurrency market, Bitcoin is always the first destination for capital flow. When new investors or large capital flows start to participate, they often choose Bitcoin because it is the safest asset and has the highest liquidity in the crypto space.

However, when Bitcoin leads, Altcoins often do not keep up immediately. Investors tend to wait until Bitcoin stabilizes or rises strongly for a period before shifting funds to Altcoins. This causes Altcoins to increase in price more slowly, and choosing the right type of Altcoin or portfolio to invest in becomes even more challenging due to the current market having too many options.

2. The interest of large institutions

Institutions and large investors often prioritize Bitcoin over Altcoins. Bitcoin is considered "digital gold" with a long history, high acceptance, and a solid ecosystem. In contrast, Altcoins often carry greater risks due to lower liquidity and uncertainty about long-term development.

Therefore, when institutional money flows into the crypto market, it primarily focuses on Bitcoin, pushing its price higher compared to the rest.

3. Diversity in the Altcoins market

The Altcoins market has significantly expanded in recent years. With thousands of coins and tokens, identifying the right potential projects has become challenging. The coin you hold or I am holding may not increase in price due to a lack of interest or incoming funds.

To optimize profits, investors often prioritize coins with high trading volume and a clear upward trend. These coins tend to attract a lot of attention and have a higher chance of price increase in the short term.

4. Changes in retail investor behavior

The period when retail investors pushed Altcoin prices up has passed. Nowadays, many are flocking to memecoins – highly speculative coins but with great profit potential in a short time.

Previously, Altcoins were driven up significantly by retail investors, especially through leveraged trading. However, the emergence of memecoins has attracted the attention of this group, significantly reducing the capital flow into Altcoins.

Prospects of Altcoins

Although the current Altcoins market is facing difficulties, not all is negative. Good projects with real value and a strong development team will still have opportunities to break out when the market stabilizes.

Advice:

  • Prioritize holding Bitcoin during unclear market phases.

  • Only select Altcoins with high trading volume and strong upward trends.

  • Steer clear of coins with unclear real value or overly dependent on community hype.

The crypto market is always changing rapidly, but real value and reasonable strategies remain the core factors that help you survive and grow.