Recently, I heard an outrageous statement suggesting that as long as Bitcoin maintains its consolidation while Ethereum surges, it means the altcoin season has begun. I really have to say, those who say this simply don't understand and can easily mislead others.
Everyone should be clear that the only sign of the altcoin season starting is Bitcoin's continuous and rapid surge; it is the unique key signal, so remember that. Many people have only a vague understanding of the real situation in the bull market of 2021, piecing together their knowledge from hearsay.
Some believe that after Bitcoin consolidates, Ethereum's surge signifies the start of the altcoin season, but they have no idea that before this, Bitcoin had surged wildly for 15 consecutive days, with a series of large bullish candles continuously creating wealth myths and dominating the front pages of major media for many days.
At this time, institutions take the opportunity to enter the market, continuously creating a wealth effect, attracting uninformed funds from outside the circle and various institutions flooding into the Bitcoin market. Soon after, institutions start offloading large amounts of Bitcoin, leaving external retail investors to pick up the tab. In the end, the incoming funds simply cannot absorb so many tokens, and the supply-demand balance is suddenly disrupted, causing Bitcoin to plummet, with panic spreading rapidly. External funds are all trapped at high levels, losing everything and eager to break even.
At this critical moment, institutions turn their funds to altcoins, while those retail investors trapped at high levels in Bitcoin hurriedly cut their losses and rush into the altcoin market, hoping to recover their investments.
The funds in the altcoin market suddenly increase, and with smaller market caps, it's naturally easier to pump, leading to the emergence of dozens of altcoins with hundreds of billions in potential market value. This is the key narrative, the most crucial part.
So, the premise for the altcoin season to begin is Bitcoin's continuous and reckless surge, not as some think that Ethereum's rise alone signals the start of the altcoin season.
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