Bitcoin is about to break new highs! But everyone, keep your hands steady! When altcoins significantly underperform Bitcoin, it indicates panic in market sentiment. For example, from October 2020, when Bitcoin began to rise, to January 10, 2021, within three months, the price of Bitcoin surged from $10,000 to $40,000, while during this time, the vast majority of altcoins showed little movement and remained at historical lows. Some altcoins may have increased, but their growth was limited, with only a few altcoins outperforming Bitcoin. This indicates that with the rise in price, retail investor sentiment is panicked; it is the institutional players and seasoned investors who are driving the price increase of Bitcoin, which has little to do with retail investors.
The subsequent altcoin season starting in February and March 2021 was merely Bitcoin players using profits to pump altcoin varieties, trying to see if they could expand their profits, while many retail investors were using their real capital to purchase altcoins. The result was that the main players successfully expanded their profits, while retail investors ended up losing their principal. $BTC
