Brothers, have you noticed? It's May 2025, and Bitcoin is soaring, while altcoins are having a collective celebration but remain inactive. Today, let's talk about this matter.

First, large institutions are flocking to Bitcoin. Bitcoin's market share has reached 60%, and financial giants like BlackRock and Fidelity regard Bitcoin as 'digital gold,' buying it up furiously and completely ignoring altcoins. With global economic turbulence, institutions are using Bitcoin as a safe haven, so funds naturally flow towards it. Secondly, the Federal Reserve's interest rate hikes have tightened market funds. In 2021, the Federal Reserve was easing, allowing some action in altcoins. Now, with high interest rates and scarce funds, altcoins, which are 'big capital holders,' cannot withstand the pressure. The Federal Reserve's rate cuts are nowhere in sight, and the tight market fund situation is unlikely to ease in the short term.

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Looking at altcoins themselves, there are already over 15,000 altcoins on the market, and this number keeps increasing daily, but there hasn't been a significant rise in new investors. Venture capital is also cautious, with funding for altcoins last year being three-quarters less than the year before. With over ten thousand altcoins competing for a limited pot, how can they rise? The old investors have also been frightened by incidents like Luna and FTX, and now they are all 'Buddhist' about it.

Regulation looms like the 'Sword of Damocles.' The SEC has strict regulations on cryptocurrencies, with no news on ETFs for Solana and XRP, and DeFi and stablecoins are under close scrutiny. Institutional funds do not dare to enter the market casually. But don't worry, the crypto market has always followed the principle of 'the big brother is full while the little brother has soup.' The Ethereum to Bitcoin exchange rate is still at a historical low, indicating that large funds have not yet adjusted their positions. Once Bitcoin stabilizes and institutional funds shift, fields like AI, Layer 2, and DeFi, which hold potential, will surely be the first to explode. What we need to do is prepare our bullets, keep a close watch on the market, and don't get shaken out before dawn!