Now, liquidity, domain and foundations favor BTC more than Altcoins.
In the next stages, a new capital rotation would boost the Altcoins again.
The cryptocurrency market crosses a stage marked by the predominance of Bitcoin (BTC), where key factors such as liquidity, dominance and fundamental elements are inclined towards digital asset.
So Point out The investor and financial analyst Ted Pillows, who believes that the Altcoins, who in previous cycles had achieved greater dynamism, Now they show fragmented behavior.
He maintains that circulating capital is being concentrated in Bitcoin and his movements set the rhythm of the rotation. In this context, Pillows emphasizes that a bitcoin bullish continuity It could give way to a “new capital transfer” to the Altcoins In the next stages.
Market data supports part of this analysis. The Altseason index, which measures the proportion of cryptocurrencies that exceed BTC performance in periods of 90 days, indicates That currently 71% of the 50 main currencies have had a better performance, as seen below:
The threshold to consider the beginning of an Altseason is 75%, which reflects that the market is very close to that reference point.
This scenario coincides with the start of October, a month that in the sector is known as «UPTOBER” Due to its history of positive results for risk assetssuch as bitcoin and cryptocurrencies.
High liquidity and greater optimism at this stage of the calendar usually favor capital movements, so It is not ruled out that the transition to an Altcoins season can occur in the short term.
Indeed, October began BTC, climbing to the USD 120,000 and putting a little more than $ 3,000 of a new price record, as reported by cryptonotics.
The concept of cryptocurrency rotation refers to the displacement of capital from one group of assets to another according to market conditions. When attention is concentrated in BTC, The resources are oriented towards it and temporarily reduce liquidity in Altcoins. Once Bitcoin consolidates his tendency, part of that capital moves to lower capitalization assets looking for greater returns.
Pillows reading points to investors should observe the continuation signals in BTC to anticipate the following phase of the cycle. While the market is not enough for the technical threshold of the Altseason, The indicators show that the transition could be close. The key will be confirmed if Bitcoin maintains the current leadership or if it opens the door to a sustained flow towards alternative cryptocurrencies.