Over the past twenty days, the cryptocurrency market seems to have been on a thrilling roller coaster ride, filled with sharp ups and downs and waves of heightened emotions.
This grand journey began with Bitcoin [BTC] breaking through $99,317, setting a new historical record and subsequently solidifying its market leadership position at a high of 61%.
However, just as market sentiment was warming up with high expectations, the market quietly entered a cooling phase, leaving a series of questions lingering in everyone's minds: where will the future lead?
Bears have clearly indicated that reaching $100,000 will not be easy—patience will be tested.
As a result, another day has passed, and the target remains out of reach, with Bitcoin currently trading at $98,300, and its dominance has fallen below 59%.
In this uncertainty, altcoins have become the biggest winners, with some achieving triple-digit gains in less than a week.
The high risks associated with Bitcoin seem to have redirected investors' attention towards more affordable assets.
However, the fate of altcoins is still closely tied to the performance of Bitcoin. Although consolidations have allowed many altcoins to break through key psychological resistance levels, a pullback in Bitcoin could quickly reverse these gains.
Altcoins must focus on their 'unique' advantages.
Indeed, a fundamental transformation is taking place in the market. Historically, altcoins have followed Bitcoin's trajectory.
However, in the recent cycle, altcoins have shown differentiation, positioning themselves as a unique asset class.
For example, within a day, Ethereum has reclaimed the resistance level of $3,500, which has been the target since July.
In fact, ETH is just one of many altcoins in this cycle that have achieved key price milestones, including breaking the elusive $1 mark.
This shift coincides with a steady decline in Bitcoin's dominance over the past four days. Contrary to popular belief, the decline in Bitcoin's dominance does not necessarily herald a bear market phase.
On the contrary, it reflects the growing appeal of altcoins as they capture a larger market share.
As mentioned above, this is often driven by investors reallocating profits from the rise of Bitcoin into altcoins for diversification and seeking higher returns.
However, to truly break free from the influence of Bitcoin market volatility, attention needs to be paid to the unique advantages of individual altcoins to distinguish them from broader market fluctuations.
For example, Solana [SOL] stands out, known for its high throughput and lightning-fast transaction speeds, becoming a promising competitor.
Nevertheless, the complete decoupling of altcoins from Bitcoin is still in its early stages. Currently, only a few altcoins exhibit significant independence.
