Recently, the market share of $BTC has risen to almost 64%, a high point not seen in recent years. Simply put, most of the money in the cryptocurrency space is currently buying Bitcoin, while altcoins are hardly being touched, making the market feel quite conservative.
You can think of it as a class of 100 students trading cryptocurrencies, where now 65 students are all betting on Bitcoin, and the remaining 35 are playing with Ethereum, Dogecoin, and various altcoins. This indicates that people are more willing to hold 'safer' coins and are hesitant to make risky moves.
Interestingly, historically, every time $BTC's market share has been this high, altcoins tend to 'wake up' quickly. For example, back in 2021, when BTC's market share surged to 70%, shortly after, Dogecoin and Ethereum multiplied several times; the same happened last November when BTC accounted for 60%, which triggered a small bull market.
So it’s very possible that: $BTC has already led a surge, while altcoins are still 'playing dead', but are actually gathering strength. Once $BTC can’t rise anymore or starts to move sideways, funds may begin to flow into altcoins, at which point we could see a collective rebound in altcoins.
For ordinary people like us, during this phase, it’s best not to get too excited about chasing Bitcoin highs, and absolutely avoid going all in on altcoins. We can select some sectors that have been generating a lot of buzz recently, such as #AI, #ZK, #RWA, and start with small positions to lay down some foundational investments, waiting for the right moment.
The current market feels like the calm before a storm; the quieter it is, the more likely it is that an opportunity is on the way. Do you agree?