Why is this bull market considered a BTC bull market, rather than an altcoin bull market? Do altcoins even have a bull market?
I've been pondering this question for a while, looking at many opinions from influencers. Most believe it's because project teams are cashing out and exploiting investors, with various low liquidity, high valuation tokens continuously taking advantage of retail investors, and exchanges constantly listing new coins, etc.
I don't think these are the main reasons. In my opinion: during the last bull market, Grayscale was consistently accumulating altcoins, which fundamentally drove the overall market up. Since the second half of 2020, retail investors have been closely watching Grayscale's holdings, eagerly following suit and making profits. This explosive sentiment led to the phenomenon in 2021 where numerous altcoins surged together.
Now, let's talk about what 2024 looks like. Various coins listed on exchanges have started to decline endlessly, with no institutions or major players stepping in to support altcoins. Retail investors are just taking painful losses, one cut after another. The only one performing relatively well is SUI, which has tripled since Grayscale announced its accumulation of SUI, which is quite decent. Since the approval of the BTC ETF, that day on August 5 could have been a commemorative day, but it was propped up by the ETF, and the result is that BTC didn’t drop much, while altcoins generally fell several times. If this happens again, can you handle it?
So, my friends, if your altcoin positions are too heavy, consider reducing them. Your portfolio should definitely be primarily in BTC.