财经少华
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What factors can trigger altcoin season?
Altcoin season is usually initiated by the start of a Bitcoin bull market, and the first step of capital flow typically involves a surge into Bitcoin and major altcoins.
Media hype attracts retail investors' attention, who may begin to purchase altcoins as a result. At the same time, investors who have made profits in Bitcoin may shift their funds to the altcoin market in pursuit of higher returns.
Historically, this phenomenon tends to occur during the second breakthrough of Bitcoin to a new high.
The flow of capital in the crypto market has a relatively clear path:
Bitcoin → Major Altcoins → High Market Cap Tokens → Mid Market Cap Tokens → Low Market Cap Tokens.
Bitcoin usually serves as the starting point for capital flow, followed by the total market cap of major altcoins, and only then do other tokens (including high and mid market cap tokens) come into play. The key is that a significant amount of funds first flows into Bitcoin and major altcoins, and then the market's greed will drive further funds into other altcoins.
This is the triggering mechanism for altcoin season. We are now on the right track. The entire cryptocurrency market (mainly composed of Bitcoin and some major altcoins, as altcoin season has not yet truly arrived) has grown from $700 billion to nearly $4 trillion.
Follow me for more information and insights about the crypto world.
Altcoin season is usually initiated by the start of a Bitcoin bull market, and the first step of capital flow typically involves a surge into Bitcoin and major altcoins.
Media hype attracts retail investors' attention, who may begin to purchase altcoins as a result. At the same time, investors who have made profits in Bitcoin may shift their funds to the altcoin market in pursuit of higher returns.
Historically, this phenomenon tends to occur during the second breakthrough of Bitcoin to a new high.
The flow of capital in the crypto market has a relatively clear path:
Bitcoin → Major Altcoins → High Market Cap Tokens → Mid Market Cap Tokens → Low Market Cap Tokens.
Bitcoin usually serves as the starting point for capital flow, followed by the total market cap of major altcoins, and only then do other tokens (including high and mid market cap tokens) come into play. The key is that a significant amount of funds first flows into Bitcoin and major altcoins, and then the market's greed will drive further funds into other altcoins.
This is the triggering mechanism for altcoin season. We are now on the right track. The entire cryptocurrency market (mainly composed of Bitcoin and some major altcoins, as altcoin season has not yet truly arrived) has grown from $700 billion to nearly $4 trillion.
Follow me for more information and insights about the crypto world.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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