Typical Cryptocurrency Market Development
• Capital Rotation: When Bitcoin #btc reaches a significant high (e.g., $135,000) and its growth halts, investors often start shifting capital from Bitcoin into altcoins. This phenomenon is known as “capital rotation” and can lead to altcoin growth if market sentiment is optimistic.
• Decline in $BTC Dominance: If Bitcoin’s growth stalls and its market dominance begins to decrease, altcoins usually experience increased demand and price growth. Investors seek higher returns in riskier assets, which supports the so-called “altseason.”
• Reaction Speed: Altcoins often react to Bitcoin’s stagnation with a delay. Initially, they remain stable or grow slightly, but if market sentiment remains positive, some altcoins may experience sharper growth afterwards.
Other Factors Influencing Altcoins
• Market Sentiment: An optimistic mood and sufficient liquidity in the market support altcoin growth.
• Technological Innovations: Successful updates and innovations in specific altcoins can accelerate their growth, even if BTC is stable.
• Macroeconomic Conditions: If the global economic situation worsens or regulatory interventions occur, altcoin growth may slow down or stop entirely.
