How to Detect Signals of an Altcoin Bull Market?
After continuous observation of multiple rounds of Bitcoin market cycles, I have summarized two key factors that can help you accurately judge whether the altcoin bull market has begun:
1. The market cap share of Bitcoin shows a downward trend.
2. Funds are clearly shifting towards the altcoin sector.
3. The overall market's total market cap exhibits very little fluctuation, and even shows signs of growth.
The so-called Bitcoin market cap share refers to the proportion of Bitcoin in the total market cap of the entire cryptocurrency market. For example, if Bitcoin's market cap share reaches 60%, it means that Bitcoin's market cap occupies 60% of the total market cap, while altcoins occupy the remaining 40%.
Once the Bitcoin market cap share rises, it indicates that investors prefer holding Bitcoin over altcoins. Consequently, as investors sell off altcoins to acquire Bitcoin, the price of altcoins will naturally decline.
When the Bitcoin market cap share begins to decrease, two scenarios usually occur:
1. Investors choose to sell their Bitcoin for US dollars or Tether (USDT).
2. Investors sell Bitcoin and instead invest funds to buy altcoins.
Thus, the decline in Bitcoin's market cap share is a necessary prerequisite for the altcoin bull market to commence.#人工智能与稳定币