Yi Lihua, founder of Liquid Capital (formerly LD Capital), recently released a viewpoint, clearly stating that the Rotation Law in the cryptocurrency market has been activated. He believes that after Ethereum (ETH) leads the surge, funds have begun to flow into mainstream mid-cap coins like SOL and BNB, which will ultimately ignite a quality 'Altcoin Season'.

💡 Core viewpoints and rotation order

The 'Rotation Law' mentioned by Yi Lihua is a classic pattern in the cryptocurrency market, where the flow of funds usually follows the order below:

  1. Bitcoin (BTC) and Ethereum (ETH) surge first: the market often sees core assets like BTC and ETH rise first.

  2. ​Mainstream Mid-sized Coins Relay​: Subsequently, funds will overflow to mainstream mid-sized coins such as XRP, LTC, and UNI.

  3. ​Various Strong Altcoins Erupt​: Finally, funds will spread to more fundamentally solid and innovative altcoins.

🚀 ​This Round of Market and Outlook​

Yili Hua is full of confidence in this rotation and anticipates that this round of the bull market will see many projects with a market value of tens of billions of dollars emerge, and its grandeur may even be crazier than before. He especially encourages entrepreneurs who have vision and innovation to seize this historic opportunity of '6 billion people financial on-chain'.

📊 ​Current Market Background​

  • ​Ethereum Performs Strongly​: The price of ETH once broke through 4900 USD, setting a new historical high, with its strong performance benefiting from substantial inflows of institutional funds through ETFs (such as purchases by giants like BlackRock) and multiple favorable technical upgrades.

  • ​​Signs of 'Altcoin Season'​: As Bitcoin's market capitalization share (BTC Dominance) declines from a high position, and funds begin to flow into other cryptocurrencies, the market has shown initial signs of 'Altcoin Season'. However, today's 'Altcoin Season' may differ from the past, presenting characteristics of 'selective rotation', where funds are more inclined to flow into sectors and projects with strong narratives and institutional endorsements, rather than a broad rise.

🔍 ​Investment Perspective Reference​

  • ​Focus on Quality Projects​: In the upcoming 'Altcoin Season', those altcoins with technological innovation (such as AI, Layer2), strong ecosystems, and institutional recognition are more likely to stand out.

  • ​Understanding Market Changes​: The current market is more obviously driven by macro sentiment, institutional funds, and specific narratives, which differs from the past market driven purely by retail FOMO sentiment.

  • ​Beware of Volatility Risks​: Although altcoins have considerable potential returns, their price volatility is much higher than that of mainstream coins, and investors need to fully understand the fundamentals of the project and manage risks.

💎 ​Summary​

Yili Hua's judgment provides a perspective for observing capital rotation in the market. The current market structure is being reshaped, and the 'Quality Altcoin Season' is more likely to be a major test of project fundamentals and innovative narratives, rather than a simple capital frenzy.

For investors, while focusing on market rotation opportunities, in-depth research on project value, grasping core narrative threads, and managing risks may better prepare them for the potential upcoming market.

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(For reference only, not constituting any investment advice.)