A prominent crypto researcher, TradeTheFlow, has outlined an atypical market cycle for Bitcoin (BTC/USD) and altcoins. The traditional crypto market sequence typically sees Bitcoin dominating during bear markets and continuing to gain dominance during the early stages of a bull market. This is followed by a decline in Bitcoin’s dominance as investors shift their focus to higher-risk assets, commonly known as ‘altcoin season.’ However, TradeTheFlow has noted a significant deviation from this pattern.
Bitcoin has maintained its dominance since the last bear market, currently accounting for 57% of the total crypto market capitalization. This trend, according to TradeTheFlow, indicates that the real bull phase may not have truly begun yet.
The analyst predicts that the next leg of the bull market will likely be driven by a select few major cryptocurrencies, with occasional bursts of activity fueled by short-term attention or innovative products attracting real users.
TradeTheFlow cautions investors to be selective in their altcoin investments, emphasizing that simply holding onto altcoins without a product or market fit and lacking organic traction will not magically increase portfolio value.
These insights suggest a maturing crypto market, making a widespread altcoin season more difficult to achieve. Investors should adopt a more strategic approach to crypto investing, focusing on projects with strong fundamentals and real-world applications.
The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on November 19.
