Bitcoin continues to fluctuate and adjust, with a net flow of 5 billion dollars for spot Bitcoin ETFs in the past 30 days.
Institutional whales are now accumulating BTC at the fastest rate in history, exceeding the market supply of BTC. While the upward trend is evident, one must remain cautious of the risks posed by major players clearing a large number of highly leveraged long users in the short term.
With BTC's market share dominance reaching 60% for the first time in 3 years, the turning point of the altcoin cycle may be approaching.
In the last cycle, when BTC's market share exceeded the 60% mark, the following occurred:
• From June to September 2019: BTC soared from 60% to 73%.
• From September 2019 to September 2020: BTC fell from 73% to 57%. We call this the 'mini altcoin season.'
• From September 2020 to December 2020: BTC eventually rose from 57% to 73.5%.
• From December 2020 to May 2021: BTC fell from 73.5% to 40%. This was when we saw the largest increase in altcoin season.
And this process cannot be completed overnight; it took nearly two years.
This pattern is highly unlikely to completely repeat this cycle, but we know it will emerge at some point in the near future.
BTC's dominance is reaching its peak, and liquidity will flow up the risk curve from Bitcoin → Ethereum / Solana → mainstream altcoins → small altcoins.
Now, just focus on accumulating and holding your most confident spot positions in alternative investments, and start planning your exit strategy.
It is very difficult to maintain an edge in the altcoin market; in addition to having sharp insight, you also need luck to accompany you.
I have listed 6 altcoin projects worth paying attention to in the near future, along with some reasons to consider them.
1. ACT - One of the hottest and most interesting AI + meme concept altcoins, and also one of the tokens I currently hold, for the following reasons:
After the 'developers are selling tokens FUD', the tokens remain oversold. It is not the best entry point, but it is also not the worst entry point.
The developer is now working hard to invest in the tokens, as he has consumed liquidity, stopped selling, and is interested in a listing on KuCoin.
DEV now has over 400,000 dollars in liquidity, exceeding his largest fundraising goal. He indeed has a plan for how to use this money to scale operations.
The Cyborgism Discord server is an important part of the growing 'agent research community', with ACT being the main service for obtaining AI on Discord.
A real community is forming around ACT; they are interested in the tokens and seem to be passionate about advancements in artificial intelligence.
2. OLM - Supports the technology used by the hyped Virtuals project and the fees generated from virtual flows to OLM holders.
OLM FDV is 40 million dollars, while the value of VIRUTALS is over 330 million dollars.
Virtuals has now integrated the OpenLM model, allowing our ecosystem builders to access decentralized open-source LLMs for their AI agents, which have a good risk-reward ratio and are worth paying attention to.
3. DOGE - Recently, many large accounts have begun to favor it, and it has reached its highest point in months.
Its market cap increased by over 8 billion dollars, and there are several reasons for this phenomenon:
• Trump winning the election = bullish sentiment
• Musk did some things with it
• Very impressive performance in the last election
4. RAY - Influenced by meme narratives, it continues to rank among the protocols generating the most fees, and can be seen as a leveraged version of SOL.
The reasons for being optimistic about it are as follows:
• Same fees as SOL and LDO
• Share income through token buybacks
• Token buybacks > incentives
• Investors fully unlocked
5. GOAT is seen as the leader of the AI + meme narrative, currently trading at a significant discount.
If you are optimistic about the future AI + meme narrative, then buying the leaders at the right time is a good choice.
If the narrative disappears, the GOAT may also disappear.
6. NEIRO - It is currently being deceived by some influential accounts, and if they continue to actively discuss this matter, it may be a trick. After some adjustment, it may rise again.
No matter how good the project is, if you buy at the wrong time, it can still lead to losses. So, it’s important to have your own plan and judgment, and not to FOMO blindly.
Risk warning: meme coins are highly volatile; exercise caution when chasing highs! The above is for information sharing only and is not investment advice. Readers should comply with local laws and regulations.
