Recipe for the current alt cycle: USD+BTC+ETH = Moon

[dragononcrypto]

I've been thinking lately why I've been buying a lot of altcoins this week and not last month, or a few months ago, or a few years ago even. Then I realised the natural cycle of events that appear to be occurring in the market. I've been waiting to invest in more altcoins, but am doing so with Ethereum.

Late last year, everyone wanted to buy up Bitcoin, as it went from $10K to $20K as well as beyond. After passing $20K, we saw Bitcoin's market dominance drop from over 70% to now around 60%, despite the price being back at $40K. While Ethereum dominance has increased dramatically.

Shortly after, next month in January (last month), Ethereum reaches it's all time high as the largest altcoin in the market. Today, we are seeing what appears to be the first signs of Ethereum losing dominance against speculative altcoins (although as well as Bitcoin today admittedly).

There are those who bought up altcoins with fiat last year, as they bought themselves Bitcoin, even if initially they were to lose a lot of BTC/ETH value, they would remain good investments for the future (if done on solid projects). Some of these are still down, but at new ATH against fiat at least.

Last month was when Bitcoiners were selling their coins for altcoins that were at enormous discounts against BTC (80-90%), the same tokens that had held their value against the dollar or even gone up 2-4x. Because one persons take profit level is another's buy entry it seems.

This month, after Ethereum's impressive rally from $500 to new ATH at $1,763, there are tokens that are looking very cheap against Ether or breaking out to new ATH, despite already doing so against BTC last month and some time ago against the dollar. Anywhere between 2-4x it seems.

The idea that altcoins can be cheap and discounts against Bitcoin and Ethereum (50-75% still), whilst at premiums against the dollar (100-200%), is exactly why these altseasons occur. There are still more investors who want to buy in as they see the potential from the different investment angle. The final ingredient for an explosive altseason is the increased speculation from traders from other sectors joining in.


The best way to illustrate part 3, would be the following chart. Note how speculative altcoins lost 58% of their dominance to Ethereum since July last year.

While it may seem like altcoins are over-extending against Bitcoin (possible they are), to see they are still down 48% against Ether:



Don't be scared to buy the high against fiat, if you're buying the low with ethereum 


TL:DR

1. The coins hold their value from stable dollar buying/selling or get pumped by fiat currencies by new money (while they generally lose Bitcoin value)
2. Bitcoiners diversify into speculative altcoins for the satoshi gains (while they generally hold or continue to lose Ethereum value)
3. Ethereum hodlers diversify into speculative altcoins for ether gains (finally outperforming both BTC & ETH, regaining their dominance)
4. Traders push the price higher, newbie traders from other sectors join in
5. The bubble inflates as retail throw more fiat currencies in

[Ghozrd]

You have quite a lot of altcoins this week, I still hold altcoins that are under $1, buying at high prices requires a lot of capital and I know UNI, SUSHI, and other altcoins have reached new ATH this year, your decision to buy altcoins is a very good decision. true, it's better to invest today than not, because the opportunity to get this moment is very rare, considering we have seen a long bear market for 2 years. this is a good time to buy.

[Bit]

Well yeah, today the cycle of the crypto market seems clear enough.
And what happens to Bitcoin recently is likely surprising. Many predictions said that the price will be under $35k and being sideways. ANd the altcoins season is starting. But Bitcoin is special crypto. This coin really gives great power that it is rising very significantly only in one day. And shortly the price of altcoins is dumping very hard. And the time for altcoins may also come in a certain period

[gunhell16]

As I observed now in the market, especially with DOT, and LINK both are performing well so far. I can't imagine that if I am not mistaken was DOT the last month was only in between 5 to 6$ each but now it's around 20$ each, almost closed with the price value of LINK.

[Crypto Guard]

I totally agree with your recipe. Because we should be much more careful. The movement of the altcoins is harder to predict and it will be harder for us to get what we want to achieve.

[masterrex]

IMHO, I think it is very clear that the market movement is very unpredictable And who knows that some of the altcoins well pump like this? Just look at Dogecoin, ADA, and XLM, these altcoins have a huge total supply but look at their price now, by the way, in regards to Ethereum and Bitcoin price pump I think it's just common results because both coins are very popular and have a base demand compared to other cryptocurrencies that were listed in the market. just my opinion!

[MrSpasybo]

I think other altcoins are also participating in this bull run, as other blockchains like Cardano & BSC are competing directly with Ethereum, DeFi tokens are continuing to be a major source of momentum for the entire community.
I agree that stable coins are one of the main components of the market, but they're just a store of value or an asset ready to pour into other projects.
I think the main energy of the crypto market's movement this time can be generalized as follows: scarcity & expectation in BTC + Ethereum overload + the excitement of DeFi.

[damsix]

-

Indeed, the good altcoins are Polkadot and Chainlink because they add so quickly to their market cap on Coingecko and Coinmarketcap.
I was not aware of the initial coin creation from Polkadot and Chainlink and suddenly it has become a very expensive coin.
Maybe this is my weakness because I missed the moment when the second coin was first created, Bad !

[Paglamon]

At present, the cryptocurrency market is constantly improving. Especially Ethereum, bnb, dot, link with bitcoin, their prices have increased a lot. The price of coins is constantly rising in the market. It is possible to make a profit by investing in the cryptocurrency market. So traders have been holding different coins for trading for a long time.

[disconnectme]

All these boils down to Portfolio management. for me Bitcoin pumps first, later the big blue chip projects joins the party, this is when you start allocating part of your BTC to these blue chips projects and then follow by mid cap projects and then the shit coins, when shit coins start pumping it is time to start re allocating your capital to Fiat or stable coins. If you want more BTC you can only make it trading these Altcoins, just don't get greedy

[Carbitcoin]

All these boils down to Portfolio management. for me Bitcoin pumps first, later the big blue chip projects joins the party, this is when you start allocating part of your BTC to these blue chips projects and then follow by mid cap projects and then the shit coins, when shit coins start pumping it is time to start re allocating your capital to Fiat or stable coins. If you want more BTC you can only make it trading these Altcoins, just don't get greedy

It is always necessary to get rid of junk coins on time, especially when speculators decided to make money thanks to these projects and begin to pump up the price thanks to their manipulations. It will always fall sooner or later, in which case it is better to immediately transfer to Bitcoin or Ethereum, although stablecoin is also an option.

[Black ID]

I think with that recipe everything will be realized. wealth is very clear in sight. And I really want to own a lot of Bitcoin and Ethereum in order to be successful in this crypto. So that I can also become Elon Musk for example.