Why do we say that Bitcoin needs to break through the $100,000 mark again to see a significant surge in altcoins?
The $100,000 threshold for Bitcoin has become an important psychological anchor point in the crypto market, as evidenced by the behavior logic of institutional investors—research reports from several venture capital firms indicate that when BTC breaks through this threshold, its asset properties will accelerate the evolution towards the "digital gold" value storage paradigm. The structure of market liquidity may therefore experience significant differentiation: mainstream tokens will exhibit a stronger liquidity siphoning effect, while the explosive cycle of altcoins may only truly arrive after BTC completes this critical breakthrough.
From the perspective of market evolution logic, the occurrence of two altcoin seasons in March and November 2024 essentially represents paradigm shift windows formed by Bitcoin breaking through historical highs. When BTC surpasses previous highs, it not only breaks a two-year market psychological shackles but also triggers professional institutions, including quantitative funds and market makers, to adjust their asset allocation strategies. These market participants with strong pricing power often prioritize choosing assets with sufficient liquidity depth, fundamentally reshaping the value of the altcoin market.
The current trend of liquidity contraction in the market is worthy of caution, as on-chain data shows that the total market capitalization of stablecoins continues to flow out, and CEX spot trading volume has shrunk to bear market levels. This pressure on the capital side forms a negative cycle with market confidence—institutional investors, lacking clear price coordinates, are more inclined to maintain low-risk exposure.
Therefore, Bitcoin breaking through this integer threshold not only has technical significance but, more importantly, builds a new market consensus. This confidence premium can often leverage funds that are 5-10 times the actual liquidity effect. From the perspective of behavioral finance, when FOMO sentiment resonates with market makers' liquidity supply, the market will enter a true phase of value reassessment.
