The Elevator Concept in Crypto Explained
What exactly is the Elevator Concept in the context of cryptocurrency? It's a model that illustrates how liquidity in the crypto market tends to flow sequentially, moving from assets with large market capitalizations down to those with smaller caps.
In the crypto space, we can generally identify three tiers of markets: the main market (primarily Bitcoin & Ethereum), the secondary market (large-cap Altcoins), and the exotic market (micro to low-cap Altcoins).
The main market typically leads the way. This is because the market tends to prioritize "primary assets," as they are perceived to offer a greater degree of certainty compared to more speculative assets in the lower tiers.
Beyond understanding the Elevator Concept, it's crucial to pay attention to the prevailing market narratives. These two aspects are deeply interconnected. Liquidity often flows into sectors and assets that align with current trends and stories.
So, if you've invested in micro or low-cap Altcoins and they haven't seen significant movement yet, patience can be key. The Elevator Concept suggests that liquidity will likely cycle through different market segments over time.
#CryptoVictim #CryptoMarket #LiquidityFlow #CryptoEducation💡🚀 #InvestmentStrategy