Bitcoin leads strongly, where will the alts go?

Bitcoin has recently shown a strong market trend, attracting funds from alts and starting to influence the performance of the on-chain MeMe coin in the past few days.

Market sentiment has shown significant fluctuations, with a pervasive sense of pessimism on social media, particularly highlighted by the voices of Bitcoin maximalists. Some respected traders and industry veterans have even stated that "the alts market is over."

From historical data, the relationship between Bitcoin and alts can be summarized into four patterns:

1. Double Rise Mode: Bitcoin and alts rise simultaneously, which usually occurs during a bull market boom. This is a suitable time to increase investments, especially when alts outperform Bitcoin.

2. Double dip pattern: Bitcoin and altcoins drop simultaneously. This is a good time to reduce risk, and investors may consider buying stablecoins and blue-chip tokens. Long-term holders may consider dollar-cost averaging or buying on dips.

3. Bitcoin falls while alts rise: This situation is relatively rare and usually occurs during slight fluctuations of Bitcoin. It may indicate a short-term altcoin market, and investors can moderately increase their risk exposure.

4. Bitcoin rises while alts fall: Bitcoin's market capitalization continues to hit new highs, usually occurring before the halving cycle or in the early stages of a bull market. During this phase, it may be worth considering accumulating alts in anticipation of a potential future breakout.

The market currently seems to be in the fourth mode, but the degree and duration of the decoupling between Bitcoin and alts in this round exceed historical precedents.

After the approval of Bitcoin spot ETFs, the market is concerned that the allocation of funds may change. Stocks of a certain tech company have become popular trading targets in the US stock market, seemingly confirming this concern and making the pessimistic outlook for alts more convincing.

However, as optimists in the cryptocurrency space, we can still see rapidly developing innovations in multiple areas, such as chain abstraction, payment finance, Web3 AI agents, and the Bitcoin ecosystem. In the MeMe coin and consumer chain sectors, we can also feel the potential for exponential growth. Therefore, to assert that alts have reached their "historical end" might be somewhat biased.

If the current market environment makes you feel anxious, you might want to pay attention to the following actively developing projects:

• on-chain abstraction infrastructure
• On-chain Abstract Comprehensive Application
• A new paradigm infrastructure from Cosmos
• Bitcoin ecological idealism project
• Bitcoin Layer 2 solutions supported by large Bitcoin mining enterprises
• Collaborate with well-known venture capital to develop an AI agent asset issuance platform
• The Solana Layer 2 project that has successfully accumulated millions of followers on short video platforms.

Staying calm and patient is the key to remaining undefeated in a highly volatile trading market.