There is a detail to note: Although Bitcoin has reached a new high, the total market capitalization of the entire cryptocurrency market has not broken its previous high (the peak of 3.7 trillion in December 2024, now at 3.4 trillion). The altcoin season index is only 25, indicating that altcoins have not yet entered a frenzy phase.
Currently, the main drivers of Bitcoin are new money from outside the circle and institutional funds, while altcoins and Ethereum have not yet shared in this wave of benefits. However, historical patterns tell us that in every cycle, Bitcoin rises first, and it may even “siphon” up, and only when Bitcoin temporarily stops rising will altcoins take over and explode. Whether this wave of altcoins can enter a phase of bull market depends on how high Bitcoin can go — the higher it goes, the more space there is for altcoins afterwards.
From the recent trends in the U.S. stock market, since April 22, there hasn't been a significant correction, and there may be a slight adjustment of around 5% coming up, which could lead to a short-term pullback in the cryptocurrency market. But looking at the long term, there is a strong expectation of interest rate cuts in the second half of the year; any small pullback after mid-May will be an opportunity to increase positions.
Now that Bitcoin has reached a new high, altcoins are showing signs of being a bit “unstoppable,” and we need to prepare in advance to welcome the rally.
