The current crypto market is no longer the 'wild west' where you can just buy coins with your eyes closed and make a profit! There are over 15,000 tokens lying around on exchanges; it looks lively, but there's only so much money in the market, and it gets spread around like pepper. New coins pop up every day, but very few are truly eye-catching.
What's worse is that institutional players have entered with 'regular army' money! Bitcoin ETFs have been approved, and traditional financial giants are joining in; this large capital is only focused on mainstream coins. The altcoin market still relies on retail investors to hold the fort, but with global regulatory tightening and economic instability, retail investors are hesitant to spend money, where will the upward momentum for altcoins come from?
Why are altcoins collectively 'lying flat'?
Some say Bitcoin's rapid rise has overshadowed everything, but the reasons behind it are much more complex! The market is redefining what 'valuable' means; the days when you could double your investment just by making grand promises are gone. Now, we need to see if the projects have real-world applications, if the technology is solid enough, and if the team is reliable; simply relying on PPT presentations is not going to work.
Additionally, venture capital is pulling out significantly! The amount of VC investment in the crypto industry has decreased by 75% compared to its peak, and many altcoin projects are facing a 'funding drought'. Without financial support, even the best ideas can only remain on paper.
There's also a key issue: the market has no stories to tell! During the summer of DeFi in 2021 and the NFT frenzy, altcoins surged alongside the concepts. Now, new concepts like AI and RWA look lively, but in reality, they are just a mirage and can't drive the market.
Can we still expect an altcoin season?
Generally speaking, Bitcoin's market share in the crypto market determines the rotation of the market. Currently, Bitcoin's market cap share is 54%, which still has room to reach its historical high of 74%. Once Bitcoin reaches a certain level and funds start to overflow, altcoins may be able to catch a breather.
However, this time the situation is a bit different! The crypto market is too tightly bound to the global economy. The Federal Reserve's interest rate hikes and cuts, geopolitical conflicts—these fluctuations directly affect the flow of funds. For example, with the upcoming Federal Reserve meeting, before the interest rate policy is determined, large funds are on the sidelines; who would dare to touch high-risk altcoins?
A reminder for retail investors:
Don't be fooled by the sudden surge of some altcoins; it's likely that the main players are profiting from retail investors. Focus more on projects with real users and the potential to make money, rather than being swayed by flashy concepts. The market is always changing, and only truly valuable projects can survive. Instead of hoping for an 'altcoin season' every day, it's better to calmly search for good coins that can withstand cycles—after all, big opportunities in the crypto world are often hidden when no one understands them!
Daily focus: LTC DGOE PENGU
