During the bull market, altcoins have plummeted over 90%, and the reasons behind this are surprisingly complex!

In the context of a bull market, altcoins have experienced the embarrassing situation of plummeting over 90%. Why is this happening?

There are mainly two reasons. First, there is a shortage of market funds. Without new funds entering the market, it becomes stagnant, lifeless. At the same time, the variety of cryptocurrencies has surged dramatically, from less than 3,000 in 2017 to over 30 million now, making it impossible for the market to digest so many. During the bull market in 2021, although the number of cryptocurrencies increased, the funds were also increasing, allowing various hot topics to be speculatively traded in turn. However, by 2024, the growth of cryptocurrencies has completely spiraled out of control, while funds have become difficult to concentrate.

The second reason is the lack of new hot topics and the absence of retail investor enthusiasm. This round of the bull market has not attracted new hot topics like before, and the speculative enthusiasm among retail investors has significantly decreased. Previously, the rise in altcoin prices relied on a large influx of retail investors, but now institutions are only focusing on BTC, and the channels for retail investors to invest in BTC have become more convenient, leading them to no longer be enthusiastic about altcoins. As a result, altcoins have no one to take over, and the market makers have no motivation to speculate.

So, how can one make money with altcoins? The key lies in the timing of the purchase. Only by buying at a low price can one gain an advantage in the subsequent market fluctuations.