Iron Law of the Crypto Market: How Bitcoin's Volatility Triggers the Altcoin Feast Historical Cycle Review and Backtrack Market Trajectory, Bitcoin's periodic surges often become the fuse for altcoins' explosive growth:
From December 2022 to March 2023, Bitcoin accumulated a 90% increase, while altcoins like OP and LDO achieved 5x growth during the same period; from September 2023 to January 2024, Bitcoin soared 192%, with coins like SEI and WLD breaking 10x growth; from September 2024 to January 2025, Bitcoin rose 110%, driving coins like SUI to achieve 5x increases, and most altcoins also recorded 2-3x returns.
Currently, the market assesses that Bitcoin is hovering around $94,000, with only 17% upward space remaining to its historical high of $110,000.
Due to the current round of interest rate cuts being weaker than the 2020-2021 cycle, market liquidity is tightening, making it difficult for Bitcoin to replicate a doubling market in the short term.
Investment strategy recommendations are supported by data, indicating that the explosive market of altcoins is highly dependent on significant volatility in Bitcoin.
Given the current lack of a clear market trend, it is recommended that investors remain cautious, reduce altcoin position allocations, and adopt a wait-and-see strategy until the market direction becomes clearer.
