There is a detail to note: although Bitcoin has reached a new high, the total market value of the entire cryptocurrency market has not broken the previous high (peak of 37 trillion in December 2024, now at 34 trillion), and the altcoin season index is only 25, indicating that altcoins have not yet entered a crazy phase.
Currently, the main drivers of Bitcoin are new money from outside the circle and institutional funds, while altcoins and Ethereum have not yet benefited from this wave of gains. But historical patterns tell us that in each market cycle, Bitcoin rises first, and it may even 'suck blood' in the process, waiting for Bitcoin to temporarily stop rising before altcoins can take over and explode. Whether this wave of altcoins can enter a phase of bull market depends on how high Bitcoin can go — the higher it goes, the greater the space for altcoins later.
From the recent performance of the US stock market, there has been no significant pullback since April 22, and there may be a slight adjustment of around 5% coming up, which could lead to a short-term decline in the cryptocurrency market. But looking at the long term, with strong expectations for interest rate cuts in the second half of the year, any small pullback after mid-May will be an opportunity to add positions.
Now that Bitcoin has reached a new high, altcoins are showing signs of being 'unable to hold back,' so we need to be prepared in advance to welcome the rally.
