The crypto market does not rise in a straight line, but presents a rhythmic rotation:
Bitcoin lays the foundation 🪙 → Ethereum opens the door to risk 🚪 → mainstream altcoins take over 🚀 → low market cap altcoins go wild 🎢.
Understanding the logic behind this wave of market movement is crucial.
Ethereum: the entry point of the risk curve ⚡
Bitcoin is increasingly seen as 'digital gold' 🏆, a macro hedge and a value storage tool;
And Ethereum is the first step for the market to test risks.
Once funds start flowing into ETH, it means the market is willing to take on more risks, and liquidity often spreads to a wider range of altcoins.
ETH/BTC: the core wind vane 📊
ETH/BTC ratio is the 'barometer' of the altcoin cycle ☔.
ETH's relative strength = increased risk appetite 📈
Bottom established = new market cycle starts 🚦
Top appears = frenzy stage 🔥
ETF fund flow and liquidity transmission 💧
The inflow of funds into the spot Ethereum ETF not only benefits ETH but also enhances overall market liquidity.
ETH trading pairs are deeper → smaller spreads ⚙️
Switching to altcoins costs less 💡
The activity of ETH ultimately drives higher-risk assets 🎯
Rotation roadmap 🗺️
Previous market cycles have almost always followed this order:
BTC starts → establishes a trend 🌍
A stronger ETH → increased risk appetite ⚡
Mainstream altcoins lead the charge (SOL, BNB, AVAX, ADA) 🚀
Mid-cap ecosystem coins → infrastructure & narrative-driven 🛠️
Small-cap coins → speculative frenzy 🎢
Currently, ETH's relative strength indicates that the market is transitioning from the Bitcoin-dominated phase to the altcoin phase.
Narrative overflow effect 🌐
A stronger Ethereum often drives the entire ecosystem:
DeFi (Uniswap, Aave, Curve) 💱
Layer 2 (Arbitrum, Optimism, zkSync) 🪜
Staking and Liquid Staking (Lido, Rocket Pool) ⛓️
NFTs and application layer projects 🎨
Signals that need confirmation ✅
Not all ETH strength means 'altcoin season.'
Real confirmation includes:
ETH/BTC stabilizes above 0.04 📊
ETF funds continue to flow in 💵
Mainstream Altcoin Trading Volume & Open Interest Rising 📈
Why is this round more special? 🌟
Unlike past retail speculation, this round has stronger structural forces:
Spot ETF → institutional legitimate channel 🏦
Layer 2 maturation → practical application promotion 📲
ETH staking yield → productive asset 💹
Narrative diffusion → ecosystem prosperity 🌱
📌 Conclusion: Bitcoin sets the tone, but Ethereum is the wind vane. ETH/BTC is a compass for observing market rotation 🧭, and ETF liquidity and ecosystem diffusion will determine how far altcoins can go.
