On January 18, Trump posted on his social media account, announcing the launch of his personal meme coin Trump, which instantly triggered a huge shock in the market. At 20:40 on the same day, the Trump token rose by 1,800%, with a price of 25 USDT and a market value of 25 billion US dollars, ranking fourth among meme coins. This event seemed to have opened Pandora's box, bringing about earth-shaking changes in the cryptocurrency market.
What is cottage season?
Whenever Bitcoin goes sideways, funds will flow into all altcoins, bringing those previously unknown niche cryptocurrencies their own spring, soaring prices, and investors making a lot of money during this period. However, all this seems to have changed quietly after Trump released his own meme coin.
Nowadays, various new coins with large market capitalization are emerging in the market like mushrooms after rain. Once these new coins are launched, their market capitalization is as high as tens of billions, just like huge black holes, sucking up the funds in the market in an instant. With their strong capital background, innovative concepts and extensive publicity, they have attracted a large number of investors' attention and funds. Investors are attracted by these new coins that seem to have great potential and high returns, and invest their own funds in them, hoping to get a share of the pie.
In such a market environment, the survival space of altcoins has been severely squeezed. Those altcoins that were favored by investors in the altcoin season are now ignored. Because the total amount of funds in the market is limited, when a large amount of funds are attracted by these new coins with large market capitalization, there is little money left for altcoins. Even if some investors still have a glimmer of hope for altcoins, they can only stay away under the general trend of the entire market.
After Trump released his own meme coin, the frequency of high-end new coins will only increase. One after another, new coins with a market value of tens of billions continue to hit the market, leaving investors overwhelmed. Under such circumstances, funds tend to flow to these high-end new coins with strong appeal and potential value, while altcoins are avoided. The altcoin season, a period that once made countless altcoin investors cheer, now seems to have become a thing of the past, destined to never regain its glory.
For those investors who still hold altcoins, it may be time to realize the changes in the market. Instead of continuing to hold on to altcoins that may never see the light of day again, it is better to sell them as soon as possible and look for investment opportunities with more potential and value. After all, in this ever-changing cryptocurrency market, only by keeping up with the pace of the market can you remain invincible in the fierce competition. Otherwise, you can only watch your assets gradually shrink in the afterglow of the altcoin season and eventually be eliminated by the market.
