Bull market direction has suddenly changed! Funds are flooding into altcoins, have you positioned yourself?
Friends, the market rhythm has really changed!
If you are still focused only on Bitcoin, you may miss out on this excellent opportunity. Multiple key indicators show that funds are massively shifting from Bitcoin to altcoins, and the market has entered a typical "altcoin season"!
Here are the key points in plain language:
1. Key indicators are off the charts:
The altcoin season index has soared above 76, reaching a new high since December last year. This means that over 75% of the top 50 cryptocurrencies have outperformed Bitcoin in the past 90 days! Historically, whenever this index breaks 75, it indicates the official start of altcoin season.
2. Bitcoin's dominance has plummeted:
Bitcoin's market cap share has significantly dropped from 66% to 58% over the past 10 weeks, and the outflow of funds is very evident. This often signals a large-scale altcoin rally, as funds begin to flow into lower-valued, higher-potential altcoins.
3. Total market cap nearing previous highs:
The total market cap of altcoins has reached $1.63 trillion, nearly matching the bull market peak at the end of last year. This indicates that funds are still continuously flowing in, and there hasn't been a large-scale profit-taking yet.
4. Macro favorable conditions:
U.S. economic data is weakening, and market expectations for a rate cut by the Federal Reserve in September are growing stronger. Once the rate cut happens, a large amount of liquidity will be released, benefiting high-risk assets, especially altcoins!
The market has already started:
DOGE rose over 5% in a single day, re-approaching $0.25
AVAX surged 18%, breaking $29, hitting a new high for the year
Analysts generally believe we are in the "third phase of altcoin season", and small to mid-cap tokens may experience parabolic growth!
But be sure to pay attention to risks!
After the index surged to 88 last December, it quickly crashed, and highly leveraged retail investors lost everything overnight. Currently, the open contract volume for altcoins is 50% higher than Bitcoin, indicating a high level of risk in the market. Once a reversal occurs, the decline will also be very severe.
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