⚠️ Will the era of 2021 not be repeated? Why is this cycle "different"?
Many are hoping for a repeat of the wild altcoin season from 2020-2021, but analyst Benjamin Cowen warns: reality is far harsher. 📉
What's happening in the market?
The top 100 cryptocurrencies' up/down index (ADI) has been in a downward trend since 2021. Simply put: Bitcoin is rising, but most altcoins are "lifeless".
Cowen's main arguments:
Masking effect: BTC's rise over the years has masked the underlying weakness of altcoins. Now, as Bitcoin's dominance increases, this weakness is impossible to ignore.
Liquidity dispersion: The influx of numerous new tokens has spread trading volume thin. There's not enough capital to support all projects.
Safe-haven asset: The current Bitcoin rally is not a "general euphoria," but rather investors shifting from declining altcoins to safe-haven assets, driven by institutional demand.
Conclusion
In 2020, the market rose in unison. Today, we see **"isolated" BTC growth**. Artificially trying to recreate past scenarios is a risky strategy for your portfolio.
What's your take? Do you think funds will flow into altcoins, or will Bitcoin ultimately dominate? 👇
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