CoinWage News Report:
From April to June, the altcoin market experienced a fierce adjustment, with the prices of many altcoins falling by 60%. Faced with such a market environment, many people have begun to doubt whether a “altcoin season” is coming. On this point, I have a different view and believe that the moment for altcoins to soar is coming, but it requires everyone to be patient.
Comparison of patterns in bull markets
In the past few bull markets, we can observe some obvious patterns:
2013-2014 Bull Market: Bitcoin reached its peak at the end of 2013 and then entered a bear market. As the price of Bitcoin rose, the altcoin market gradually became active. For example, Litecoin (LTC) experienced a sharp rise at the end of 2013 and the beginning of 2014.
2017-2018 Bull Market: Bitcoin reached a new all-time high at the end of 2017 and then entered a bear market. Similarly, the altcoin market experienced a crazy rise in the later stages of the Bitcoin bull market. For example, Ethereum (ETH), Ripple (XRP), and other altcoins experienced significant increases in the second half of 2017 and the beginning of 2018. In this bull market, many people transferred their funds to altcoins after profiting from Bitcoin, leading to the prosperity of the altcoin market.
2020-2021 Bull Market: Bitcoin reached a new all-time high in early 2021, and the altcoin market experienced a fierce rise in the following months. Particularly, altcoins related to DeFi projects and NFTs performed exceptionally well in the first half of 2021. Many people invested their profits from Bitcoin and Ethereum into other high-potential altcoin projects, driving the prosperity of the altcoin market.
The logic of the altcoin market
In every bull market, Bitcoin, as the leader of the cryptocurrency market, usually experiences a price increase first. As the price of Bitcoin rises, market sentiment gradually becomes optimistic, and whales who have made significant profits from Bitcoin begin to transfer some of their funds to the altcoin market. This process is gradual and not immediate.
Opportunities for altcoin soaring
The altcoin market’s soaring often occurs in the middle to later stages of a bull market. When the price of Bitcoin reaches a certain height and the market’s attention to Bitcoin reaches its peak, funds gradually flow into altcoins. At this time, the price of altcoins starts to rise, creating a new market frenzy.
The moment of altcoin soaring is not only a spontaneous market behavior but also a result driven by project parties and big capital. In a situation of high market sentiment and abundant funds, project parties seize this opportunity to create market hype and attract more investors. This process not only drives up the price of altcoins but also provides the best strategy for the project parties to sell their holdings.
Current market opportunities
Although the altcoin market experienced a significant decline from April to June, it does not mean that the altcoin season will not come. On the contrary, this adjustment clears out weak positions in the market and lays the foundation for future growth. In the current market environment, the long-awaited Bitcoin spot ETF has been injecting confidence into the market, and more institutional funds may gradually enter the market, providing important support for the altcoin’s soaring.
Investor strategies
For us, patience is key. It is particularly important to remain rational and patient while waiting for the market to soar. First, choose altcoins with potential and practical value, and avoid blindly following the trend. Second, pay attention to the overall trend of the market and fund flows to capture market trends. Finally, allocate assets reasonably and avoid overconcentration in a single project.
Conclusion
The moment for altcoins to soar is approaching, but it requires everyone to be patient. In the middle to later stages of a bull market, large capital flows into the altcoin market, creating bubbles and market frenzy while providing the best strategy for project parties to sell their holdings. In the face of the current market adjustment, do not be discouraged but see the future opportunities. By patiently waiting, the moment for altcoins to soar will eventually come, and seizing this opportunity will lead to substantial returns in the market.
