In recent sessions, we can easily see:
BTC is moving sideways in a stable price range.
Altcoins are declining steadily, despite Bitcoin not having a strong drop yet.
The USDT exchange rate in the Vietnamese market remains high, indicating that the demand for stablecoins is not decreasing.
You can compare the two charts of the altcoin/BTC and Altcoin/USDT exchange rates.
Since the beginning of September. When increasing, alt/btc is weaker than usdt because the atl/usdt pair uses futures leverage, while when decreasing, it is stronger because it directly trades through spot.
So what is happening?
1. Whales rotate capital
Instead of directly dumping altcoins into USDT (which would cause the alt/USDT chart to 'break' strongly), whales and market makers choose to convert altcoins into BTC or ETH.
This method keeps the alt/USDT pair looking relatively stable.
But in reality, if we look at the ALT/BTC or ALT/ETH pairs, we will see altcoins losing value very strongly.
2. Market defensive sentiment
Investors are reducing risk, prioritizing BTC and ETH – assets with high liquidity, less volatility.
This explains why capital is not flowing into altcoins, causing them to weaken gradually.
3. Signals to pay attention to
BTC Dominance and ETH Dominance are on the rise → confirming that capital is accumulating into large coins.
Altcoin Market Cap decreases steadily → indicating that altcoins are still being drained.
USDT maintains a high value → the demand for stablecoins remains strong, USDT dominance is still high but there are no signs of capital wanting to take risks again.
4. Meaning for investors
During this phase, altcoins struggle to create their own waves due to a lack of new buying power.
If BTC stays sideways for a long time and then moves strongly, altcoins may be 'kicked' down another level.
Safe strategy: monitor cash flow, avoid holding too many weak altcoins, focus on top coins or wait for clear signals before heavily investing in altcoins.
👉 Conclusion: The market is entering a phase where whales are accumulating liquidity into BTC/ETH, and altcoins are merely 'prey' in the capital rotation cycle. Retail investors need to stay alert, don't be caught up in the feeling that alt/USDT hasn't broken yet and mistakenly think it's an opportunity.
Preparing to write the overall plan, so I might cut a section into an article for newcomers to understand a bit about the selling off by large wallets. Because Binance hasn't posted in a while, it's quite flop already ^^
personal opinion. If I had to choose between chasing prices and DCA at lower prices, I would wait to Buy The Dip ^^
thanks!
