By observing the past few rounds of bull markets, we can find some obvious patterns:
In the bull market of 2013-2014, Bitcoin entered a bear market after reaching its peak at the end of 2013. As the price of Bitcoin rose, the altcoin market gradually became active. For example, Litecoin (LTC) experienced a round of sharp rise in late 2013 and early 2014.
In the bull market of 2017-2018, Bitcoin entered a bear market after hitting a record high at the end of 2017.
Similarly, the altcoin market also ushered in a crazy rise in the late stage of the Bitcoin bull market. For example, altcoins such as Ethereum (ETH) and Ripple (XRP) experienced a sharp rise in the second half of 2017 and early 2018. In this round of bull market, many investors turned their funds to altcoins after making profits on Bitcoin, which promoted the prosperity of the altcoin market.
In the bull market of 2020-2021, Bitcoin reached a new historical high in early 2021, and the altcoin market experienced a round of fierce rise in the following months, especially DeFi projects and NFT-related altcoins performed exceptionally well in the first half of 2021.
After making huge profits on Bitcoin and Ethereum, many people invested their funds in other high-potential altcoin projects, further promoting the prosperity of the altcoin market.
The logic of the altcoin market is that in each round of bull market, Bitcoin, as the leader of the currency circle, usually takes the lead in ushering in price increases.
As the price of Bitcoin rises, market sentiment gradually turns to optimism, and big investors begin to turn part of their funds to the altcoin market after making a lot of money on Bitcoin.
This process is carried out step by step.
Although the altcoin market experienced a sharp decline from April to June, it does not mean that the prosperity season of altcoins will not come.
On the contrary, this adjustment clears the floating chips for the market and lays the foundation for future rises.
In the current market environment, the passage of Bitcoin spot ETF has injected confidence into the market, and more institutional funds may gradually enter the market, which provides important support for the rise of altcoins.
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