TradeTheFlow outlined the typical sequence of the crypto market, which begins with Bitcoin's dominance during bear markets, continues to increase in the early stages of a bull market and then declines as investors start allocating capital to higher-risk assets, known as "altcoin season."
A crypto researcher has suggested an unusual cycle for Bitcoin (CRYPTO: BTC) and altcoins, which is deviating from the typical market sequence.
The Matter: According to TradeTheFlow, the typical sequence of the crypto market begins with Bitcoin dominance during bear markets. It continues to increase in the early stages of a bull market and then declines as investors start allocating capital to higher-risk assets, which is also known as "altcoin season."
However, the analyst noted that this cycle has not played out as expected.
Bitcoin has continued to dominate the market since the last bear phase, currently accounting for 57% of the total crypto market capitalization.
"We are experiencing an atypical market cycle," TradeTheFlow tweeted. "The real bull phase hasn't truly begun yet."
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The Next Step: TradeTheFlow predicts that the next leg of the bull market will likely be driven by the same two or three majors, with occasional runs fueled either by short-term attention or killer products that attract real users.
"I think that choosing your alts carefully is becoming more important than before," the analyst advised. "Don’t get fooled into thinking that simply holding onto dead alts with no product market fit and no organic traction will magically 10x your portfolio."
TradeTheFlow’s insights suggest a maturing market, making it more difficult for a widespread alt season, and hint at a more strategic approach to crypto investing.
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