Capital typically moves from Bitcoin to altcoins during a specific phase of the market cycle known as "altcoin season". This shift usually happens when:

1. Bitcoin stabilizes after a rally:

Once BTC has a strong upward move and starts trading sideways, investors look to altcoins for higher returns.

2. Increased risk appetite:

As confidence grows in the market, traders seek bigger profits in altcoins, which are more volatile than Bitcoin.

3. BTC Dominance Falls:

A drop in Bitcoin Dominance (BTC.D) on charts signals that money is flowing into altcoins instead of BTC.

4. Strong narratives or upgrades in altcoins:

When specific altcoins (like ETH, SOL, or AI tokens) have bullish news, upgrades, or hype, they attract capital.

5. Ethereum often leads the move:

After Bitcoin, Ethereum usually gains traction, followed by mid-cap and small-cap altcoins.

KHALID JAVED