Every new bull market sparks debate - will there be a full-fledged alt-season or will this cycle be an exception?
It used to be simpler: first capital would flow into bitcoin, then into ethereum, then rotate into smaller alts that literally exploded amid liquidity. Today, the situation is more complicated.
First of all, the crypto market became huge. Now there are thousands of altcoins, but not all of them will get their share of liquidity. In previous cycles big pumps happened because there was less choice. Today 90% of the market are worthless scum coins created to be pumped and dumped.
Second, investors have become more discerning. Institutional capital has emerged that does not throw money at everything. They go to projects with real savings, not memecoins with marketing. This means that even if the alt season happens, not everyone will win.
⏰ What it means for us❓
Altseason is not mass growth, but a selection of strong projects. It's worth looking for assets with fundamentals rather than hoping for magic.
Yes, rotation is still possible, but not for the whole market. Most likely some projects will gather liquidity, but it won't look like a parabolic growth of the whole altcoin market.
And the icing on the cake is that liquidity is everything. As long as the market is hot enough, alternatives can move. But if global liquidity starts to decline, it makes no sense to expect a massive pump.
Instead of blindly believing in the "alt season", it is important to understand that the key to winning today is competent research and correct sector bets.
As the realization of our cherished X's slowly creeps in, we learn and adapt 💎