The cryptocurrency market is experiencing sector rotation — an analysis of the logic behind the alternating rise of mainstream coins
Recently, the cryptocurrency market has once again shown a phenomenon of 'sector rotation', where after Bitcoin (BTC) leads the initial rise, funds gradually flow to Ethereum (ETH) and other mainstream cryptocurrencies, driving their prices to continue climbing. This trend is not accidental; it embodies a clear market cycle and logic of capital movement.
💻 Typically, the start of a cryptocurrency bull market is often led by Bitcoin. As the market's stabilizing force, Bitcoin's rise can attract a large amount of new capital and market attention. When the price of Bitcoin reaches a certain high and enters a consolidation phase, some early profit-taking investors begin to seek new investment opportunities in pursuit of higher returns.
At this point, Ethereum, the second-largest cryptocurrency by market capitalization, usually becomes the first major destination for capital flow. With its strong ecosystem and broad application scenarios, Ethereum is viewed as a relatively stable investment asset by the market. The rise of ETH is often interpreted as a signal for the commencement of altcoin season.
As market sentiment is further ignited, funds continue to flow from Ethereum to other mainstream public chain coins or popular project tokens with different narrative themes (such as DeFi, GameFi, AI, etc.), forming a 'rotation rise' pattern. Investor sentiment also shifts from cautious to optimistic during this process, even leading to a FOMO mentality, accelerating the flow of capital across different sectors.
The alternating rise of mainstream coins is a common pattern of capital transmission and emotional amplification in the cryptocurrency market during a bull market cycle. Its basic path is:
👍 Bitcoin leads: attracting both existing and new market capital.
👍 Ethereum takes over: absorbing the capital flowing out of Bitcoin and initiating expectations for altcoin trends.
👍 Mainstream coins rise collectively: funds further disperse, seeking value opportunities, leading to alternating performances across sectors.
