If ETH can continue to "siphon" funds from BTC, the altcoin season may begin. Here is my understanding of the altcoin season:

Criteria for Determining Altcoin Season

1. The overall market first strengthens, with the primary sign being a breakthrough of the March 2024 high—this is the initial signal of market recovery.

2. A further breakthrough of the historical highs of the entire market in 2021 means that funds and sentiment have significantly flowed back, and the crypto market enters a high-intensity active cycle.

3. ETH reaches a new high, indicating that mainstream funds have rotated from BTC to Ethereum and are beginning to spread to on-chain ecosystems.

4. BNB stands above the $1000 mark—acting as one of the barometers of the altcoin market, its strength means that funds are beginning to accelerate towards various on-chain assets.

Typical Path of Fund Rotation

Beginning of Bull Market: Funds first flow into BTC → BTC market share rises → Altcoins are "bled out" → Altcoins generally decline.

Altcoin Season Begins: Funds flow out of BTC → BTC dominance decreases → Altcoins gain liquidity → Altcoins generally rise.

Only when funds gradually flow from BTC to ETH and other altcoins, and several leading projects continue to rise, does it meet the complete characteristics of an altcoin season. Sporadic rises in individual coins do not represent that a real altcoin season has begun. #btc #ETH #山寨币